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What to do before applying for a business loan, by your small business accountants in Melbourne

Applying for a business loan can be a daunting and difficult task for most small business owners, so it is essential for you to be prepared. Our small business accountants in Melbourne want to talk to you about what you should be doing before applying for a loan.

Did you know that securing business capital all comes down to having the right type of preparation for your business? As small business accountants in Melbourne’s CBD, we see too many businesses trying to get loans, yet to only be rejected by the lender because of the lack of preparation. Here are a few tips on what to do before applying for a business loan:

• You’ll want to start with a business plan, in order to get the loan you need to be running a credible and progressive business
• Prepare your business financial statements for the past few years
• Clearly outline the purpose and amount needed for your loan
• Be sure to look into your personal credit history, the lenders will look at your history and then compare it with the business prior to giving you the loan
• Know what your capacity for collateral is, this means that you need to normally nominate something as insurance for the loan (you don’t want to have to nominate everything)
• Always understand how much you will be actually paying for the loan, it is important to know the interest and amount needed to fully repay it
• Don’t just choose the first lender you find, research and research for different kinds of lenders and lending options

Being the owner of a business will mean that you need to make decisions that can impact the business, which can be good and bad depending on the situation. We think the best way to make these decisions is by contacting our accountants for small business in Melbourne who can guide you through the process with our advisory service.

As always, feel free to get in contact with our small business accountants in Melbourne if you have any enquiries.