PREREQUISITES AND PROCESS OF APPLYING FOR A LOAN
Loan offers get rejected every day, yet, a considerable number of SMEs successfully access loans from various agencies, especially the Bank of Industry. The important questions to ask are, “What are the successful SMEs doing differently? Why are the others getting rejected?”
It’s pretty simple; the people reviewing your loan offers are smart, profit-driven and uninterested in throwing money away. They are keenly assessing the following parameters;
Business Plan/Idea/Feasibility study
Your business idea must first original and aimed at meeting actual existing needs. Drafting an airtight business plan that shows and practicable operations and profitability is the next important step in impressing the banks. No one wants to lend money to a plan that won’t work or make enough profit to pay back such loans. A business idea may have very good prospects, but a badly written or shoddily presented business plan may destroy your chances. Feasibility studies are pertinent to convincing the banks. You need to be able to demonstrate that this business plan actually works in real life for real people.
Your business presentation must be just as good as your physical presentation. Your appearance and carriage also make an impression on the banks. You must present an outlook of professionalism and confidence in order to win them over.
How To Apply
The best way to apply for any of these loans is through your account officer. You can get the contact details of your account officers through your internet banking platform or send an email to your bank requesting for contact details of your account officer. I will advise before you do that, make sure your prerequisites are all intact so you don’t waste your time because these banks are quick to reject your offer once they see any fault in your Business Idea or personality.
While the new CBN directive has opened numerous timely doors of opportunity by making more loans accessible with relative ease, the scrutiny of loan eligibility by the commercial banks and agencies remains just as keen as it has always been. This means that SME owners must be armed with the right information and attitude in order to maximize the present loan opportunities.
This report has only laid a foundation for the right knowledge on how to obtain loans successfully.
I know you have lots of questions in your mind like:
How do I take advantage of this CBN directive?
How do I choose a Unique Business Idea?
How do I Prepare myself before meeting my Loan officer?
How do I write a Business plan that will make a broke man borrow money to fund my business?