Securing your first business loan marks an exciting milestone in your entrepreneurial journey. While the process might seem more demanding than the initial setup of your business, you should know that there are positive steps you can take to enhance your loan application experience. Yes, facing uncertainty can be a part of this process, especially when the urgency to secure funding is a factor. However, there are various things you can do to increase your likelihood of a successful loan application. Explore these nine strategies to pave the way for this major financial leap in your business.
1) Choose the Best Business Loan Provider
The financial institutions that offer loans for businesses aren’t all the same. Some specialize in certain industries, business sizes, or geographical areas. Finding a lender that aligns with your business needs should help you more easily secure a loan with more favorable terms and conditions since the lender will be more familiar with your overall risk profile.
For a safe and manageable business loan, Philippines’ startups and businesses of all sizes are now turning to Maya Business. The Maya Flexi Loan is a no-collateral product exclusive to Maya Business merchants that quickly provides borrowers with loans of up to PHP 2 million. With its fast turnarounds and manageable payments, Maya Flexi Loan is the perfect funding source for everything from equipment purchases to emergency payroll coverage.
2) Research the Needed Collateral and Guarantees
Not all business banking loans require collateral or other guarantees. The aforementioned Maya Flexi Loan, for instance, offers qualified borrowers loan amounts of up to PHP 2 million without the need for collateral.
However, many other lenders require collateral or personal guarantees, especially for new businesses or for large loan amounts. If this is the case, you have to be prepared to offer valuable assets or find a suitable co-signer to improve your application's credibility.
3) Prepare Necessary Documentation
Be ready with all the documentation requested by your lender. This may include business registration papers, tax records, bank statements, and any other documents that give the lender an idea of your ability to make regular payments.
4) Build a Solid Business Plan
In addition to the usual financial and business documents, many lenders will require you to send them a comprehensive business plan that outlines your business concept, goals, financial projections, and repayment strategies. A well-structured plan demonstrates your ability to repay the loan and provides lenders with an idea of how much risk they may need to take on.
5) Develop Your Pitch
Many lenders will also want you to make a presentation that supports your business plan. Developing a strong pitch that appeals to both emotional and logical arguments will help you sway lenders into approving your application with full confidence.
6) Establish Your Business’s Credit History
Building a strong business credit history that is separate from your personal finances is crucial as it gives lenders a good idea of the credit risk you present. If you haven’t taken out loans in the past, be sure to pay all your business invoices promptly to demonstrate your company's creditworthiness.
7) Maintain Good Personal Credit
In addition to your business’s credit profile, many lenders consider your personal credit history when assessing your loan eligibility. This is especially true if your business is new. Outside of business, keep your personal credit score healthy by paying bills on time and managing your personal debts responsibly.
8) Demonstrate a Consistent Cash Flow
Most seasoned lenders are not as interested in your business’s profitability as they are in its cash flow. Strong cash flow suggests stability and, in turn, demonstrates a low risk of default. Your chances of securing a sizable business banking loanwill increase substantially if you follow these best cash flow management practices for SMEs and startups.
9) Consider Seeking Expert Advice
Lastly, when in doubt, consider consulting with financial advisors or mentors who can guide you through the loan application process. If you can, choose advisors who have taken out loans in the past, particularly those who are adept at making compelling cases to lenders.
Maya Flexi Loan Gives You Convenient Funding Whenever You Need It
Maya Flexi Loan safeguards your business with a safe funding source that you can tap into at any time. Create your Maya Business Manager account to enjoy fast loan application turnarounds, easy repayments, and low interest rates.
Signing up for Maya Business Manager gives exclusive access to the Maya 1-2-3 Grow bundle. Maya 1-2-3 Grow lets you enjoy a 1% MDR (merchant discount rate) discount on all QR Ph transactions for 3 months after signing. This gives your business an extra PHP 14,600 in transaction savings for every PHP 1 million in QR Ph sales, strengthening your business savings value and reducing the need for emergency loans.
The exclusive Maya 1-2-3 Grow Bundle also lets you open a Maya Business Deposit account for your settlements. With its market-disrupting 2.5% per annum interest rate, your business’s fund value will be boosted by PHP 25,000 in interest earnings each year on a PHP 1 million deposit. Additionally, you’ll save even more cash in your day-to-day operations, thanks to Maya Business Deposit’s zero maintaining balance and free transfers via InstaPay and PesoNET.
Lastly, Maya 1-2-3 Grow also automatically qualifies you for a Maya Flexi Loan offer of up to PHP 2 million in just 3 months. For a better offer, be sure to use Maya as your primary processor for all your business’s cashless payments. Use Maya for all your transactions to boost your chances of getting the loan amounts you need.
Send in your Maya Business Manager application today to enjoy the Maya 1-2-3 Grow bundle and to secure your first Maya Flexi Loan.
