Another Handful of Tips 98R – Borrowing Money
Five of the best tips when presenting a case to borrow money
Many new businesses fail because they are under- capitalised.
Before you present your case for a loan think about the needs of the lender. 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 need and 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.
“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.