How to get 100% finance for your business
Using your credit cards to raise cash for
moneymaking deals has been covered in our other
guides in this series, and is one way of
financing your business 100%.
Should you go to a bank and apply for a business
loan, the bank will usually only loan you an
amount equal to the amount you will be putting
into the business. In other words, if you have
$20,000 to finance a new business, but feel you
would do better with $40,000, aquiring a bank
loan should not be too much of a problem. Make
sure you have a good business plan, thoroughly
researched and documented, with cash-flow
forcasts for the first one or two years of
trading.
This is all very well if you have the money, but
often we can find ourselvs with no capital, yet
see opportunities passing us by from lack of
cash.
It is best to avoid a business loan unless you
have half of the cash to match the bank's other
half. Instead, apply for a personal loan. You can
tell the bank that your loan is for a new car,
home improvements, property repairs etc. As long
as you can satisfy the bank that you are a good
credit risk, and that your credit rating is in
order, the bank will not particularly be
concerned as to what you wish to do with you
money, only that they can make a profit out of
you, and the money will be repaid in full
according to their terms.
As you can borrow smaller sums from different
banks, you do not even have to worry about
borrowing the full amount from one banking
source. Always remember, though, that if you are
making more than one application for a loan,
always submit your applications on the same day.
By doing this, when lenders check against your
credit record there will be record of other
applications other than the application you are
making with that particular bank.
This advise assumes that you have already read
the other titles in this series, particularly
"How to obtain a first class credit rating" and
"Borrow $20, 20, 30,000 with your credit card.
