Flaws to Fix in your Business Plan to Get a Business Loan - Loan Trivia

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Wednesday, 21 November 2018

Flaws to Fix in your Business Plan to Get a Business Loan

If you have plans of expanding your business, then a business loan is one of the best option to take your business to the next level. There are a number of lenders available and almost all of them will ask the same two questions - the amount for business loan you need and the time you require to repay back.

The answer to both these will depend on your business plan. Mentioned below are thus a few flaws which you need to steer clear of -

Making Unrealistic Claims

Despite being positive about the prospects of your business, you should not make any grand claims that your business is the best or it it will scale great heights in a number of years. This is because the lenders are the best and they will know everything by taking one look at your business profile.

Incorrect Calculations

Incorrect calculations demonstrates that you are not aware of the needs of your business. This mostly happens when businesses quote a much higher loan amount than the one deduced by the bank. In such a case, it is essential to calculate every aspect of your business properly before applying for a business loan.

Not Considering Business Rivals

It is an impossible proposition that your business will be the sole player in the market and face no rivalry. Business rivalry takes a toll on the profits and it is thus essential to factor in the business plan. It will also prove to the lender that you are realistic when it comes to your business and give serious consideration to the eligibility for the business loan.

There are a number of lenders who offer business loans including financial institutions. They have varying interest rates, tenor and eligibility. Check the details of each of the lender before deciding to opt for any lender.

Also Read: 7 Flaws in Your Business Plan You Need to Fix to Get a Business Loan

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