Friday, 22 March 2013

Preparation is Key to Getting a Loan

It is definitely a myth that there is no funding available for entrepreneurs, as there is without question more funding than ever before available to entrepreneurs in South Africa. If you are in the market for a personal loan or need a loan to get your business off the ground and have not being successful in securing a loan is often the main reason why entrepreneurs often put off going it alone or individuals simply give up on trying to secure a home loan, personal loan or other much-needed finance.

Take note that not all businesses suit all financiers. Many entrepreneurs will soon become frustrated trying to access funding because they are not being successful. Many successful business owners will admit that they asked numerous funders before getting the finance they were looking for. This is usually due to a number of factors ranging from being unsuitable to not having all their ducks in a row.

Entrepreneurs usually learn from trial and error and adjust the sales pitch to the lender. One way to increase your chances of getting financing is setting up a pre-pitch meeting with the lender. You need to find out exactly what it is that they are looking for and what you as an entrepreneur can tweak and change to increase your chances of getting funding.

There are usually areas that you have not even thought about and you would not have been in a position to answer certain questions in an interview. Preparation is all-important when asking for any type of loan.

Funding is usually the bugbear of most entrepreneurs and the general consensus is that there is no funding – but this is simply not the case at all.

You can always bootstrap your business – did you know that many of the most successful businesses globally were launched on a wing and a prayer and no outside funding whatsoever? Alternatively find the right funding medium that suits your business but ensure that you get everything ship-shape prior to pitching to your funders.

If you are in the market for a personal loan, a loan for your business or a home loan, it is always wise to prepare well prior to giving your pitch.

No comments: