Starting a business in the Philippines is never easy. You may have the knowledge and the skills, but as with all things, there will always be a first time. You may even need to re-consider your own funds, your own capital, just to start up your dream venture. In such case, you need to approach a bank or an institution that would be able to lend you the right amount to start your small business. You may be unsure of the dos and don’ts, but definitely want your application to be approved on your very first attempt. No worries, as we’ve listed down four (4) surefire ways to get your small business loan approved.
1. Consider all your options.
It is always a must to understand the different types of small business loans available. Yes, you’ve read that right. There are actually different types to choose from, and it would be in your best interest to decide on one which would greatly work for you. You have the small business line of credit, the accounts receivable financing, the working capital loans, the small business term loans, the SBA small business loans, the equipment loans, and the small business credit cards. Knowing them would provide you with a general idea of how to best prepare the required documents, thus, pushing you closer to a well-needed approval. Each has their own underlying policies and regulations, so feel free to discuss them with your bank or lending institution.
2. Take note of your own credit history (then fix everything).
Your reputation will always precede you, which means that the lenders are going to do their own research during the duration of the loan application. Regardless of business size, if you have a negative record on your past credits, they may hesitate to approve your needed amount. Make sure to settle everything before submitting your papers to avoid such obstacles along the way. They would usually review your credit score/credit report, assets in the business, investors in the company, and financial statements, just to name a few.
3. Prepare the various requirements for your small business loan application.
Always remember that it’s important to be prepared and organized. Just like any other school examinations, doing your homework and reviewing your papers (in this case, your business documents) will give off an impression that you are very serious about the whole deal, and that is a big indicator for lenders to entrust you with their money.
4. Be clear about the amount that you want to borrow.
A small business would not require a big income, depending on the type of service and product that you would like to offer. List down all of your possible expenses along the way and let your lenders know that you are knowledgeable about the ins and outs of your chosen venture. Perhaps prepare a few documents showcasing your ideas, so that they may also provide a realistic rundown of the amount, a capital that both you and the lender would be able to agree on.
Get a jumpstart on your business venture with a trusted name that offers only the best service possible. If you’re a residence of Laguna and Southern Metro Manila, then Cebuana Lhuillier’s Lucky Loan is definitely your top choice. It is a multi-purpose loan offered to registered entities such as tricycle operators, credit cooperatives and other groups, as well as SMEs such as restaurant and mini groceries, among other businesses. Our network of more than 2,200 Cebuana Lhuillier branches and online presence give customers unlimited access and utter convenience in applying for a loan. Our five-point application-to-disbursement process ensures services are delivered on time. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now—we assure a fast, easy and secure transaction.
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