There are a number of different things you should know about getting your loan application approved. Affinity Beyond Capital offers a variety of business loans to help you set up and/or grow your business. However, there are some things you should know about getting approved for your loan application.
Present a clear and structured loan application file
In most cases, the banker you submit your loan request to will not decide whether or not to grant it to you. That banker will read your file, listen to your presentation, and defend your file before a loan allocation committee. So you have to build your file accordingly.
Most of the time, the file that will be presented to the loan allocation committee will be made up of two parts: a part formalized by the bank which will be completed by your bank adviser and a part which corresponds to the file you will have left with your adviser.
A - Identify the information necessary for the loan request
To facilitate the work of your bank advisor, start by contacting them and asking them what they need for their internal file. Not only will this help you identify the elements necessary for the successful allocation of the loan, but it will also instill the advisor's confidence in you while making you seem thorough and prepared. The advisor's view of you will be instrumental when he is defending your file with the engagement committee.
B - Submit a clear and structured loan application package
To defend your file, your contact must understand and approve it. During your presentation interview, give your advisor a qualitative and logical file (neat, clear, and structured), and this will help the advisor understand and support your project. Remember, the advisor’s motivation to defend your business loan request is key to getting approved for the loan. Your advisor will probably only have a short time to present and defend your project, and your thorough preparation will help.
Note: In the digital age, remember to prepare and provide a paper file and a digital one so the advisor can make a clear and concise presentation to the committee.
C - Work on the quality of your oral presentation
Banks seek to reduce the risks associated with loan repayments. Therefore, your goal is to reassure your banker about the quality of your project and to convince him that paying off the loan in full will not be a problem.
So be clear and get to the point without dwelling on the details. Make a logical and carefully prepared presentation that highlights your strengths and prospects, and be sure to back them up with a few concrete elements (figures, market research, customer feedback, etc.). A simple, clear, and complete presentation will greatly help your advisor when delivering it before the committee.
In the end, your contact must have retained 5 essential elements of the project:
• It fulfills real needs of customers.
• It is technically feasible to complete on time.
• It is viable.
• It is profitable.
• It is being run by a competent team.
The development plan has been well prepared (forecast, action plan, planned resources, etc.)
It is only at a later stage that your advisor will ask you about the points that seem essential to him. If your initial interview has been conducted correctly, you will be able to anticipate some of these questions, prepare for them, and insert the answers in the required written and digital documents.