Have you ever thought about a bank loan to finance your project?
With a startup creation project in the works, you are looking for funding to launch your activities. For business creators, a bank loan is the most suitable solution. If your project is well put together, driven by a solid motivation, banks and other financial brands will not hesitate to grant you the requested financing.
How does a bank work?
First of all, it should be remembered, the role of a bank is to finance the economy through private and public companies. And like any self-respecting company, it chooses its investment plans carefully to maximize the return on the funds it injects.
This is one of the reasons why banks redouble their vigilance when financing a project. In fact, when a bank is about to grant a bank loan to a project, it does not wish to take more risk than the project leaders themselves. It reassures them a little more when they know that the risks will be shared.
It is these parameters that lead to the refusal of financing for concepts deemed too daring, with an unbalanced budget plan or with holders having too little experience in management compared to the wishes of the bank.
How to ensure obtaining a bank loan?
To have all the chances on your side, balance the funding. 50% equity and 50% financing from the financial brand. However, if your project is part of the creation of “limited risk” companies, the bank may revise downward (up to 30%) its requirement to provide equity.
The contribution of own funds is essential to convince the bank of the seriousness of your approach. Before approaching a particular bank, play the competition. By using an online credit comparator, you can choose the best credit offer on the market.
Take the time to compare the interest rates and the repayment period of each offer in order to find the loan that is best suited to your finances. If you are looking for large financing, hiring a broker is recommended. Indeed, its expertise will allow you to discover as many banks as possible potentially interested in the idea of financing your project.
What are the criteria that can determine an agreement?
The bank's decision will always be based above all on the “business plan” that you are going to propose. But that's not all, this business plan must above all be realistic and credible. Pay close attention to working capital needs, build up a file from a quote and some additional documents to back up the facts.
Another important point: banks and financial brands attach crucial importance to the skills of the bearer to develop the business. In other words, before applying for financing, you have every interest in being a good manager.