Are you applying for a business loan and want to benefit from the best market conditions? Several techniques can allow you to obtain very good banking conditions. Some of these are common sense, but others are less obvious.
Build An Irreproachable Business Plan
Your business plan is THE negotiating medium par excellence. This document fully integrates your application for professional financing. As such, it plays a decisive role. Here are the levers to activate to benefit from the best banking conditions, thanks to it.
First, be sure to follow several common-sense rules. Present your business plan correctly, and do not drown your interlocutor in a multitude of information. Proofread, have you proofread and correct your spelling mistakes. You must include only the elements necessary for the proper understanding of your file. Avoid text blocks and alternate them with images, charts, or tables.
Then, be reasonable on the number of financial tables inserted in your business plan. Sometimes a balance sheet, income statement, cash flow statement, and financing plan are enough. Also, highlight the financial information that interests a banker: self-financing capacity, amount of equity, borrowing capacity, debt ratio, etc.
Show That You Believe In The Chances Of Success Of Your Project
During your search for financing, you will surely come across several credit institutions. Dress appropriately and pay attention to your language during your dates. But above all, highlight your motivation and beliefs in your business creation or takeover project's chances of success.
The relationship you will have with your bank is inevitably based on trust. And this confidence, you must inspire it in your interlocutor from the first meeting to hope to obtain good financing conditions. The feelings of your banker must weigh positively in the balance. Because, failing that, it will play against you. Smile, be efficient, and concise in your words.
Have someone accompany you if necessary
Putting together a financing application file and negotiating banking conditions are sometimes complex missions for an entrepreneur new to the subject. If you do not feel capable of carrying out this work, surround yourself with competent professionals who will do it for you.
An accountant will know, for example, to build your business plan. It will help you prepare it (inventory of expenses and receipts, financing and investments, etc.). It will ensure a clear and professional presentation of the document.
A financing broker, for his part, has the strength to negotiate with his banking partners. He has contacts with most credit institutions. Also, this professional knows the nature of the arguments to be highlighted to them.
Negotiate The Conditions Of Your Professional Financing
A bank won't necessarily offer you the best deal right away. Moreover, commercially speaking, it has no interest in doing so. In doing so, it leaves room for maneuver in terms of negotiation. Take your chance and negotiate your banking conditions.
Indeed, the Law imposes very few provisions in a bank loan agreement. Most clauses (including those that provide for your commitments and those of your business) are negotiated with a banker.
Moreover, some banks would seem to "appreciate" the company's approach wishing to impose the withdrawal or modification of one or more clauses of the loan contract. The negotiation can relate to the interest rate, the guarantees given, or the repayment terms.