Opening up a business or planning to build a new branch for expansion of your existing business might require a lot of money. Financial assistance can be achieved through commercial loan, however before the loan is approved, entrepreneurs need to get ready the essential documents such as business plan, balance sheets, business or personal resume, pro forma statement and collateral of the borrower. Consider these steps in order to obtain commercial loan.
Step 1: Prepare your financial documents.
Financial documents such as profit and loss statement, business bank statement for three months, list of assets and balance should be prepared before creating a business plan. If you are just a start-up business, gather your six months’ personal bank statements, starting costs of fixture purchases, inventory and equipment and the state registration of your business,
Step 2: Create pro forma statement
This statement will project the earnings and expenses of the business in the future. It should be attached to your business plan. Have a professional accountant to write pro forma statement for your convenience.
Step 3: Create your resume.
Specifically, a business resume. The document shows the products or services your business offers. Like any other job seeker’s resume, it contains the experiences and past employment of the CEO. If you are still in the planning stage of your business, have a personal resume
Step 4: Write a business plan
Everyone should have a plan, especially your business. A business plan is usually a 15-page document showcasing the earnings and expenses, the products or services the business offers, the management structure, operating costs and marketing strategies. You could hire a professional to create an efficient detailed and satisfactory business plan.
Step 5: Lastly, apply for a loan.
Search for a reliable and licensed commercial lender. Ask the important documents necessary to get loan approved as soon as possible. Make sure to comply with their rules and regulations.
Make sure to use the money wisely in building and expanding your business.