Loans are a great way to provide the initial thrust to your business. From the traditional to the alternative lenders, venture capitalists to SBA loans, in today’s competitive world of business there are varied options to fund your business. Securing small business loans isn’t easy especially in the city of New York, the financial capital of the world.
But then it isn’t that tough if you are clear about what you need, have a vision for your business and have a clear chartered path on how to grow. When you are asking for funds then you have to be at your best. You should have a clear understanding of what your business is, your competitors and how you plan to achieve your targets in the long run.
Business Plan– Business plan will help your probable investors to understand who and what your business is. The feasibility of your project in real time, the growth factors that will fuel the business in the long run and the ROI (Return On Investment) that you are going to bring to the business. Business plan not only gives your business a strong foundation but also helps you to understand your business as well. It not only charters a growth path but provides an understanding to your investors for the right kind of small business loans your business needs. In short, your business plan is the blueprint of your business.
Know your competition– Knowing your competition gives you the edge in the market. You should know who your competitors are in your segment and how you are going to keep them at bay from eating into your clients. New York is a cut throat competition market and knowing our competitors, their strategies and plans to counter their strategies will provide the investors an insight into the detailed planning of your business. Think from the competitor’s point of view. Find out the loopholes and plug them at the earliest. If investors see that you are really passionate about your business half of your work is done.
Understand the requirements of your business– When you are asking for money, understand how much would you really need. You do end up asking for more than your requirement. Put yourself in the shoes of the lender and think why and how you would finance your business. This is important as it gives an insight into your business fundamentals in real time.
Core list of lenders and type of lending– In order to find out the lenders you need to know them. Understand the kind of lenders you want to pitch for small business loans. Find out their earlier investments, the kind of funding provided and the interest rates. There is no harm in looking around for your potential investor. There are various types of loans out there apart from traditional lending pertaining to your varied requirement. Lenders normally look at your credit rating, your cash flow status and collateral you can bring on the table. Traditional banks, financial institutions, angel investors can make your work easy especially if you are living or doing business in the city of New York, a hub for the entrepreneurs.