Need a LOAN?
Do you need money to buy a property such as a house, or an apartment, or to help establish a new business?
Many new businesses fail because they are under- capitalised and you may need to borrow money to make sure your new business succeeds.
Before you apply for a loan think about the needs of the lender first. Lenders need security so aim to persuade them their money will be safe if they lend it to you.
Five of the best tips when presenting a case to borrow money
* Produce evidence of the demand, or the potential value of your investment
Check your credit rating before you apply for a loan.
Carry out market surveys to collect facts showing there is a demand for your product or service.
For a house or apartment, is it in a good location? Will it rise in value?
* 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 and how you propose to pay back the loan.
* Get supporting statements from professionals
Get letters from your accountant, lawyer, valuer to support
* Be professional in your approach
Present yourself looking well groomed, confident and full of enthusiasm.
Answer questions honestly, clearly and succinctly.
* 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.
“Don’t be afraid to go out on a limb – that’s where you find the fruit.”
Source: “Persuasive Ways. ‘Tricks of the trade’ to get your ideas across”. First published by Moss Associates Ltd., New Zealand, by CCH Australia Ltd and in Chinese by the Shanghai People’s Publishing House, the Singapore Institute of Management, Kogan Page Ltd, U.K and in Hungarian by Bagolyvar Konyvkiado. Also published as the “Secrets of Persuasion” by Cengage Learning Asia and as an e-book and sold by Amazon.com.