A Handful of Tips 47 – Borrowing Money

A Handful of Tips 47 –

                             Borrowing Money

Five of the best tips when presenting a case to borrow money

 

Many new businesses fail because they are under- capitalised. 

Think about the needs of the lender before you present your case. Lenders need security so aim to persuade them their money will be safe if they lend it to you.

 

1. Produce evidence of the demand

Carry out market surveys to collect facts showing there is a demand for your product or service.

 

2. Prepare a well thought-out business plan

The  business plan will help you analyse the project and clarify your ideas.  

 

Your  written plan should support your case for borrowing money and show you have budgeted for contingencies.

 

3. Get supporting statements from professionals

Get letters from your accountant, lawyer, valuer and any other highly regarded associates to support your case.

 

4. Be professional in your approach 

Present yourself looking well groomed, confident and full of enthusiasm.

Answer questions honestly, clearly and succinctly.

 

5. Show you have a good reputation for hard work and repayment of previous loans 

Lenders will usually check out your work history, your internet history and your ability to pay previous loans on time.


-Geoffrey

 

“The important thing is what the lender wants to know, not what you want to tell them.”

 

Source: “Persuasive Way.  Tricks of the trade to get your ideas across” Moss Associates Ltd. “Secrets of Persuasion” Cengage Learning Asia, “Persuasive Ways” (Simple Mandarin) Shanghai People’s Publishing House. Also available as an e-book from Amazon.com

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