There is more to embarking on a project, it is not just about having a
good and pragmatic business idea, a person venturing into business must
also know where to find resources most especially capital. Knowing
where to obtain capital resources is what i consider as the greatest
talent of a successful entrepreneur. This Article would discuss the
stages involved in a Successful loan application to enable you finance
your business project. This Article would also discuss how to repay your
loan to enable you qualify for another loan in the future.
- Upgrade and repair your credit report
Your Credit Report is your Credit history; it is the record of your
attitude as regards borrowing money and repaying at the right time.
Order a free copy of your Credit Report and search for negatives. The
most common negatives are late payments, repair this negatives by paying
the necessary penalties.
- Justify a stable source of income
There is a popular saying that people who fail when confronted with
little challenges would most certainly fail when confronted with major
challenges. You cannot persuade a lender to give you a loan except you
can persuade such a lender that you have an existing source of income
that will ensure that you repay the loan as at when due with or without
the success of the project you intend to embark on. This must be
contained in your loan application if you are to get approved.
- Ascertain the amount of money you need to borrow
The amount of money you need to borrow would help you ascertain who
would be your most likely lender. It may also influence the type of loan
you would choose to apply for.
- Research loan types (secured/unsecured)
A loan may be secured or unsecured. Secured Credit are credit
advanced with the deposit collateral security documents. Failure to
repay the loan as at when due will give your lender ownership of such
collateral security. Whereas an Unsecured Loan does not involve
collateral security. Secured loans always have lesser interest rates
than unsecured loans. They also have a longer time frame for repayment.
Unsecured loans are beneficial to people without collateral security or
if your investment is an high yield venture that will enable you repay
your loan within a short period of time. You need to determine which of
these types of loans is best for your business.
- Apply to the right lenders
When making a loan application, consider two major financial
institutions. Banks and Credit Unions. I would recommend a Bank. When
making your application, apply to two or three banks. You will most
certainly be approved by each of the banks you apply to if you have
taken time to prepare very well for your application. You are however to
receive this Loan from only one of the banks. The reason why i would
suggest you apply to more than one bank is that it gives you the benefit
of choosing which bank has the best loan terms that is convenient for
you.
- Pay origination fees on time
When you have received your loan, take note that some banks would
require you to pay origination fees on the total sum to be repaid to the
bank. Origination fees do not apply to all kinds of loans and when they
do, they are always very small and unharmful to your purse. Endeavour
to pay it on time as doing so will improve your Credit rating.
- Pay back your loan as at when due
Never disappoint your lender; you may need them again in future. Keep
to payment schedules and never miss a deadline. It will give you a
positive credit score and ensure that you are automatically
click here to approved when you submit your next loan application.
source: everybodylovesyourmoney.com
