Being an entrepreneur is only 1% idea, most of what it takes is guts, hard work, precision and the drive to succeed, and of course, money. Loads of it. The odd thing is, many entrepreneurs are broke and need that money. That’s where small business loans come in. A small business loan is the boost you need to grow your business from the idea in your mind or on your books to the thriving business that smiles at the bank. Many small business owners often find it difficult to access loans in the UK because they do not know what to look out for when applying. This post talks about the things to know when applying for small business loans in the UK.
If you look like you need it, you won’t get it
Dressing like a slob to an interview is a sure way not to get the job. The same principle applies to getting a small business loan from the bank; if you dress like you need money, you most likely would not get it. You have to approach the process like you are applying for a job, get a good application, solid collateral and give a good presentation. No bank will reject you after all that.
Ask only for what you need
It is tempting to demand outrageous figures because, it’s not your money. Realize that the more you demand for, the more likely you are to get rejected. Find out exactly what your business needs and with facts, figures and charts to back it up, ask the bank for that exact figure.
Bad credit means rejection
If you have a history of bad credit, UK banks will not want to give you loans. Find a way to settle your bad credit before applying for a loan at most UK banks because chances are you will be rejected. However, if there is nothing you can do about the bad credit, you should know that several online sources often give loans out to individuals with bad credit and poor collateral. It is not always advisable to deal with them, but in a pinch, they could prove to be your last resource.
Face rejection squarely and move on
Finally, if you do get rejected by a bank loan official in the UK for any reason at all, it is not a time for you to be dejected or feel unsatisfied about yourself. Rather, look inwards and examine the loan application interview. Try and determine what went wrong in the interview, go back to your drawing board and try to refine it. Once you have done so, apply again. This time around you will be successful.
Without small business loans in the UK, numerous entrepreneurs and SMEs would be unable to survive. The government needs these small businesses to drive the economy and while they are poised to encourage banks to give loans to SMEs, understand that the loan process is not a charity or grant, and you will have to repay it. Don’t bite what you cannot chew.