Um loan can serve either to start a business or to expand it or simply maintain it. However, there are 7 items that you should evaluate before you make a business loan. Know each one of them in this article.
Open and maintain a business of your own may not be as simple as you might imagine. In addition to good planning, you need to be able to afford all the costs for a non-profit period.
If you have a great business idea, coupled with good business planning, but you do not have enough money to put it all into practice.
Getting a loan may be the best way out but it is important that you be aware of the 7 items that you should evaluate before making a business loan that we will show you in this article, see what they are.
7 Items You Must Evaluate Before Making a Business Loan
Clarity of purpose
It is imperative that the reason for the need for the loan is clear and that all the necessary calculations have been made so that you know exactly what amount is required. So you will be sure that it really is your only option and what amount to be requested.
Make Thought Decisions
When we talk about making a business loan, we are talking about a considerable amount of money. So this decision needs to be made carefully. Think carefully and analyze all the possibilities before you start planning a business loan.
There are many contents that can bring you more clarity about the real need to apply for a business loan and how to do it in the best way. Before making this decision, study as closely as possible about it. worth it know this Sebrae material on the subject.
Be aware of your personal finances
We know that the loan application will be for your company, but this does not mean that your personal financial situation will not be investigated prior to the release of that loan.
Evaluate the financial options offered
Each financial company works with rates, interest, deadlines, limits, restrictive conditions and different requirements. Carefully evaluate each of these items and see which company will offer the best option in a general context for you.
It is also essential that you know the possibilities of paying the loan well, and that they are within your real possibilities, without depending on future profits. For this you can perform a economic and financial feasibility study.
Analyze the CET
The terms and interest rates are not the only things that you should worry about, financial institutions work with administrative fees that are charged on top of the total value of the loan.
Therefore, it is interesting that you carefully evaluate the CET - Total Effective Cost before closing the deal.
Review your business plan
In this step, it is possible that you have already chosen the financial institution with whom you will do business. However, business loan is still not secured, you will need to convince the dealer of the institution that the release of your loan is safe and a good deal.
To do this, you need to review your business plan, doing a detailed market study and clearly show where and how the borrowed money will be applied.
By being aware of these 7 items you should evaluate before making a business loan, you will surely make a good choice and a business that will bring many benefits to your company.
If you encounter difficulties during this process, seek an accountant and ask for help, as a professional can tell you the best ways and options in these cases.
By Jeniffer Elaina, from Smartia