Which Document Should you Prepare First before Approaching a Lender?
Planning is the key to obtaining the funds you need to start a business or to finance your existing business’s expansion process.
What do you Need to Prepare First and Foremost?
The answer is many things – but the most important is a business plan. You have to prepare a business plan most especially because almost all lenders want to see one just to evaluate your business. You do not necessarily need a 20-plus page business plan, but you will need some documentation answering the questions given below.
- How much money do you want?
- How do you intend to use the funds?
- How will you repay the loan?
Try to have some clarity with regards to these. If the above three questions can be answered clearly in four pages, then go for it. Make sure that you have the plan document in hand before approaching that first lender. It all comes down to making a good first impression on the lender that you approach.