In the life of many companies they reach a time when they are in need of requesting external financing to be able to maintain their activity or to continue growing. But at that moment the businessman asks himself several questions: where can I go to get the financing for my projects? Will they grant it to me? What can I do to make it more likely to be given to me?
It is important to take into account how this credit application is going to be prepared and to know very well the situation of your company to see the possibilities on granting financing for the projects that the company has.
Then we will tell you some of the tips or data to consider to get the best financing for business projects.
But first, here is a summary of the tips when requesting financing for business projects.
Financing business projects with a solid business plan will be key
The development of a good business project, which is solid and backed by an effective and consistent market study, will be key to convincing those skeptics who can offer your company financing. Therefore, the elaboration of the business plan is the first thing that a company or an entrepreneur should consider.
Questions such as whether the business is key in the area, if there is a demand for said company, etc., are those that must be answered in that document. Taking all these points into account and highlighting them in the business plan will help the application to have a more favorable vision, while if certain ambiguities coexist in the business plan or it is not sufficiently detailed, it will cause distrust.
By financing a business project justifies the purpose and return
In the request for financing of business projects it is important to detail and express clearly what are the reasons why the company requests the money and why the requested money will be used, either for the purchase of machinery, for the expansion of offices or for payment to suppliers, among others.
On the other hand, it will also be key to explain in detail how the necessary liquidity will be achieved that will allow the company to pay off the loan with consistent and reliable forecasts.
The experience, a point in your favor to get the financing of business projects
In the financing of business projects, especially in cases of entrepreneurship – which in our case are managed through Mutual Guarantee Societies (SGR) – it is difficult to guarantee the success of a business: what today has high expectations of success Tomorrow may fail if proper and timely management is not carried out.
Therefore, the experience that the entrepreneur or entrepreneur has in a certain sector or business field will influence the final decision. An entrepreneur with 20 years of experience in the automotive sector is not the same as that entrepreneur who starts in that sector without having developed activity in it.
In the financing of projects negotiates the conditions, not the amount
When an individual proposes to request financing for business projects for his business or venture, he has already estimated the amount he will need to continue his activity or carry out his project, which is normally the minimum necessary.
That is why it will be important to try not to touch the requested figure and to compensate it, what we can do is negotiate or vary the conditions of the loan such as interest, term or guarantees to adapt to the requirements of the entities that will lend us the capital .
Fund a business project with endorsement
A guarantee is not a 100% reliable guarantee that the company will face your loan, however, it is a kind of ‘declaration of intent’. That is, a guarantee that the company or the entrepreneur is willing to face and for which he will be sure that he can face the loan; For this, it has the financial support of its private economy, its partners or its relatives, thus offering a loan with a guarantee.
In this area, there are Reciprocal Guarantee Societies (SGR) whose objective is to facilitate access to the financing of business projects by offering an endorsement to projects that they consider sufficiently interesting, reliable and with a future. This will give many points in your favor to introduce you to a financial institution and request financing for your business project.