Click on the links below to learn more

It is a good idea to research the different types of loans offered to small businesses by banks and other lenders. You can compare interest rates, fees and terms as well as any other associated costs to find the best deal for your business needs. It's also a good idea to look out for special offers, and don't be afraid to negotiate, the market for finance is very competitive so it's worthwhile pushing hard to minimise your lending costs.

When you have decided to apply for a loan, be sure to accurately prepare all the necessary documents and information that the bank or financial institution will require to process your application.

Loan applications require a lot of detail, including:^[1]

The business - A short description of the business - its history, past achievements, products and services, number of staff involved, location and a description of the premises, machinery, equipment, vehicles and other key assets.  For start-ups, describe the products and services you intend to provide, projected demand for your products/services and your marketing plan.

Your history - Details of your own and other stakeholders' educational qualifications, business experience and past achievements.

Amount and purpose of loan - The amount and purpose of the loan should be covered in detail, including how the amount was arrived at.

Repayment - Clearly establish how the loan repayments will be made.

Financial statements - Sales and profit projections over the term of the loan and, if an existing business, current balance sheet and the last three years' annual accounts.  Include a monthly cash flow budget for the 12 months ahead with the loan repayments included.

Security - Lenders usually seek some form of security from you, such as:

• assets such as real estate or shares in public companies;
• surrender value of an insurance policy;
• personal guarantee.

You're more likely to succeed in your loan application if you provide a well researched and presented business plan which includes:

• your business goals and longer term objectives;
• market research that supports your financial projections and proposed borrowings;
• information systems you will put in place to allow you to monitor the business and respond to changes affecting your projections.