To determine your business’ financial risk, we need to know the financial state of your business and the security you’re able to offer.
To grant your business loan, we need to know how much cash you’re willing to contribute to your business, and where it’s going to come from (and it can’t come from other loans).
To demonstrate that you’ll be able to pay back a loan, you need to prepare a cash flow projection for at least the next 24 months.
We’ll look closely at your breakeven point, and prefer to see a cash margin of safety of at least 20%.
This means you’ll need 20% more cash than the absolute minimum required.
So your cash flow projection should be an amount of at least 20% to 50%, depending on the type of business and set-up costs you have.
We also need to know what back-up plans you have if your sales don’t meet expectations.
Finally, we need security before we can grant you a loan.
When deciding on the security required, we look at both your personal and business assets.
Very often, any equipment you want to buy with the loan can form part of the security you offer.