<body><script type="text/javascript"> function setAttributeOnload(object, attribute, val) { if(window.addEventListener) { window.addEventListener('load', function(){ object[attribute] = val; }, false); } else { window.attachEvent('onload', function(){ object[attribute] = val; }); } } </script> <div id="navbar-iframe-container"></div> <script type="text/javascript" src="https://apis.google.com/js/plusone.js"></script> <script type="text/javascript"> gapi.load("gapi.iframes:gapi.iframes.style.bubble", function() { if (gapi.iframes && gapi.iframes.getContext) { gapi.iframes.getContext().openChild({ url: 'https://www.blogger.com/navbar.g?targetBlogID\x3d32066143\x26blogName\x3dPinoy+Raket+-+Business+Ideas,+Tips,+R...\x26publishMode\x3dPUBLISH_MODE_BLOGSPOT\x26navbarType\x3dSILVER\x26layoutType\x3dCLASSIC\x26searchRoot\x3dhttp://pinoyraket.blogspot.com/search\x26blogLocale\x3den_US\x26v\x3d2\x26homepageUrl\x3dhttp://pinoyraket.blogspot.com/\x26vt\x3d-7724954844926534140', where: document.getElementById("navbar-iframe-container"), id: "navbar-iframe" }); } }); </script>
Pinoy Raket - Business Tips, Resources and Ideas for the Filipino


Add to Google

 
ABOUT THIS SITE

Welcome to Pinoy Raket! Learn the latest tips and tricks, the ins and outs and the resources every Filipino entrepreneur needs. Compiled and published from different websites. Tara! Raket Tayo mga Kabayan!

SEARCH THIS SITE
Looking for a specific article or entry within Pinoy Raket? Use the search facility below.


RECENT TOPICS
 » Transforming plastic junk into works of art
 » Orchid Production Guide
 » 7-11 Store Franchise
 » Jackfruit Farming and Products
 » Coffee Production
 » Rabbit Raising
 » Franchising vs. Start-ups
 » Laundry Business and Franchise
 » Tilapia Farming and Tips
 » Tocino Making

Your Ad Here
POPULAR ENTRIES
Entrepreneurial Essentials
 » How do you find the right business to put up?
 » Register a Business Name at DTI
 » Rent or Buy Your Space?
 » Find Products To Sell Online
 » Top 10 Home Business Opportunities
 » How To Start a Home Based Business
 » Franchising vs. Start-ups
 » What Makes and Entrepreneur
 » Globe Visibility Promos
Small and Medium Business
 » How To Make Scented Candles
 » How to Make Herbal Soaps
 » Virgin Coconut Oil
 » How to Start a Clothing Store
 » Herbal Medicines Part 1
 » How To Make Homemade Gifts: Personalized T-Shirts
 » How to Make a Simple Christmas Parol
 » LPG Powered Cars and Taxi Cabs
 » Coco Nectar Vinegar
 » Christmas Decorations
 » No-Bake Cakes
 » Making Dipped Candles
 » How to Make Activated Charcoal
 » Soap Making Part 1 - Easy Soaps
 » Decorative / Novelty Wax Making
 » Laundry Business and Franchise
 » Cell.Biz - Cellphone Repair Training
 » SMART Bro Computer Station Promo
Agri-Aqua Business
 » Duck Raising, Breeding, Etc.
 » All About Century Eggs
 » Goat Raising
 » Raising Hito / Catfish
 » Mango Farming and Tips
 » Banana Farming and Products
 » Tilapia Farming and Tips
 » Rabbit Raising
 » Coffee Production
 » Jackfruit Farming and Products
 » Orchid Production Guide
 » Balut Making
 » Salted Red Egg Making
 » Calamansi Farming and Products

Food Business
 » Home-Made Tomato Ketchup (Catsup)
 » Home-Made Ice Cream
 » Kropeck From Shrimp Heads
 » Siopao Business Tips and Recipes
 » Chicharon Recipe and Franchise
 » All About Century Eggs
 » Fruitcake Recipes
 » Halloween Treats Recipes
 » Preserving Sardines in Can
 » How to Make Sausage Casings
 » Pizza Business and Recipes
 » Mango Recipes
 » Banana Farming and Products
 » Peanut Delights and Snacks
 » Tocino Making
 » Jackfruit Farming and Products
 » Starbucks Copycat Drinks and Pastries
 » Puto Bumbong and Bibingka
 » How to Make Boneless Ham
Business Franchise
 » PLDT Everything Online Franchise
 » Jollibee Fastfood Franchise
 » Ink Refilling Business
 » Food Cart Business Franchises for P15,000 up
 » Laundry Business and Franchise
 » 7-11 Store Franchise
 » Waterless Carwash Center
Multi-Level Marketing
 » Beware of Pyramid and Ponzi Schemes
Funding Options
 » Loans for the Poor
 » Top 7 Reasons Why Invest In Forex
 » MicroLending Money and Small Financing
 » PayPal Service For Pinoys
 » Halloween business is booming
 » Getting A Bank Loan Checklist
 » How to Raise Money to Start a Business
 » The Six-Step Process to Raising Capital
ARCHIVES
 » August 2006
 » September 2006
 » October 2006
 » November 2006
BLOG LINKS
 » karmi
 » edge
 » siopao master
 » Hepatitis Resource Center
 » noli
AFFILIATE SITES
 » Blogarista Site Directory
 » Pinoy Blogarista
 » Pinoy ShowBUZZ
 » Pinoy Kusina
 » Pinoy Song Hits
 » Pinoy Travel
 » Pinoy Care
 » Pinoy Transcriptionists
 » Acne Tips and Advices
 » Make Money Online
 » For UK drivers with convictions or bans get a quote from Reduce My Quote
SUBSCRIBE
Enter your email address to receive updates via Email:

 
SPONSORS
 
 
Chips & Bits
 
Western Union
 
Text Link Ads
 
 
Toys R Us
 
Shop for Vitamins & Minerals at GNC.com
 
Voltexx, Inc.
 
 
Auto Internet Marketing, Inc.
 
.Mac (Apple Computer, Inc.)
 
8x8, Inc.
 
Build a Professional Looking Website with Homestead.com.
 
 
 
 
pinoy

top blogs



Business Blogs - Blog Top Sites

 
 

Text Link Ads

Monday, October 23, 2006
Getting A Bank Loan Checklist


If you are a start-up entrepreneur, getting a bank loan is like going through the needle. It is tough, but not totally impossible. You just need to do your homework well. Here are the kinds of preparation you need to do to increase the chances of getting that bank loan approved.

Borrowing to start a business is not easy. Getting a bank loan, particularly for a start-up business and a newbie entrepreneur, is like going through the needle. More so if your business is home-based and on the Internet.

Banks favor an established businessperson with a solid credit rating, a sizeable bank account, experience in the business they propose to enter, and business plans that show the ability to repay the loans. If you are not one, then you need to double your preparations to convince the banker to lend you that much needed start-up capital. If your business is a start-up, bankers will need to know as much as possible about you and your business. Lenders will ask for an awful lot of questions, and it takes a great deal of work to put it all together.

However, many small business owners often make the mistake of not being adequately prepared when going to the bank to the loan. Surprisingly, many loan applicants don't even have the slightest idea how or when they intend to repay the money they requested. Often they don't even know how much money they need. When asked how much money they want to borrow, many people give these two common responses: "How much money can I get?" and "As much as possible." Is it any wonder that lenders say no?

The bottom line is that it pays to do your homework before you ask for a loan. Bear in mind that the probability of getting your loan approved goes up if the degree of risk associated with lending you money goes down. To lower your risk and improve your odds of getting the loan, you need to anticipate the question lenders will ask you. You need to present your banker insights into your business that may enable him or her to easily approve your loan. For example, prior to filling out a loan application, you should know:

1. Exactly how much money you need? Be as exact as possible, adding a little for contingencies and the unforeseen extra expenses.

2. How you plan to use the money? Telling the banker that you want a loan to "have working capital" to the fastest way for your loan to be denied. There are only three things you can do with a loan - to buy new assets, pay off old debts, or to pay for operating expenses. Be specific as possible.

3. How long it will take you to repay the loan? Your cash flow projections will help you formulate a repayment time frame for the loan. This is the time when you need to convince the banker of the good potential of your business and its long-term profitability.

4. What rate of interest rate can you afford? There is no sense in tying yourself up in a loan that will squeeze out your profits and bleed your business dry. It does not benefit you to take on debt that cannot be repaid.

5. What can you use as security for the loan? A loan is a risk, and the bank needs to make sure that they can get their money back. You need to present your personal guarantee to repay the loan and collateral. Your goal is to convince the banker of the value of your collateral.

Of course, don't forget to present that all-important written business plan explaining in detail your business objectives, projected earnings for the next one to three years, marketing strategy, and other relevant information. Be sure your marketing strategies are outlined in detail to lend credence to your sales projections.

In addition to your business plan, you need to support your loan application with numbers - preferably good ones. Part of that homework is to gather the financial data that will enable you to prove to lenders that you are a good credit risk. In short, this entails putting together a credit history that includes the following:


* Personal financial statement listing your assets and liabilities
* A list of all credit cards and their current balances
* All outstanding loans, including original balances, amounts outstanding, and current monthly payments
* Total monthly mortgage or rent payments
* Net monthly income from your home-based business, an outside job or other sources
* Checking and savings account balances
* The value of your automobile(s), including original cost, balance owed, and current monthly payments
* The current value of all property, including real estate, stocks and bonds

Getting a loan is going through a hard road. Bankers need to be sure that they are not taking inordinate risks with you. Your role as the loan applicant is to convince the bankers that you and your business are good credit risks.

By George Rodriguez
Power Homebiz Guides Staff Writer

About the Author:

George Rodriguez is a staff writer of Power Homebiz Guides. For a step-by-step guide to starting a business, order the CD-Rom or Download "Power Home Business Ideas" from PowerHomeBiz.com at http://www.powerhomebiz.com/Index/practicalbizideas.htm



Tags:



delicious/  Simpy  kinja  Technorati  Yahoo My Web

Posted on 11:20 PM | 1 Comments | Email Story To Friends | Subscribe Via Email


 Search the Internet for Getting A Bank Loan Checklist
Google

Backlinks this post:

Create a Link

1 Comments:

What a nice post. Your blog is very informative yet very helpful. Thanks for the tips.
Anonymous loan modification said this on Thursday, May 07, 2009 6:27:00 PM  

..................................................

Post a Comment

BACK TO HOMEPAGE



Text Link Ads




Text Link Ads

Pinoy Raket is part of the Pinoy Blogarista Network

Contents and articles contained within this website are owned by their respective authors. These were collected to provide Filipinos the resources they need in starting their own business without the pain of searching the vast space of the World Wide Web. Credits and source link are indicated at the end of every article if it has been taken from another site,