Securing a small business loan can be challenging. However, the process usually begins when the business owner applies to the bank. The bank will ask for basic information about the business, such as it's revenue and expenses, as well as the amount of money the business owner is seeking to borrow.
- Get organized: Before you apply for a loan, get your finances in order. This means creating a budget, tracking your spending and income, and knowing your credit score. This will give you a better idea of how much money you can realistically borrow and how much you would need to pay back each month.
- Find the right lender: Not all banks are created equal. When shopping for a small business loan, compare interest rates, fees, and repayment terms to find the best deal. Also, make sure to read the fine print carefully before signing any paperwork. Please find a bucket of FCMB’s SME loans https://www.fcmb.com/business-loans
- Build your credit: Banks will look at your credit score when considering your loan application so it's important to have a good credit history. A strong business credit score is key to sustaining a successful and prosperous enterprise. By exhibiting financial responsibility and stability, you can open doors to more favourable loan rates and terms, as well as better prices when dealing with the bank. A good credit score is a powerful negotiating tool that can save your company a great deal of money. You can keep building your company’s financial reputation, and check in with the major credit agencies from time to time to ensure your credit score is accurate.
- Make your payments on time: This may seem like a no brainer that's it's important to make all your loan payments on time. Not only will this improve your credit score, but it will also save you money in the long run by avoiding late fees and penalties
- Talk to your lender: if you are having trouble making your loan repayments, don't be afraid to reach out to your lender. Many lenders are willing to work with borrowers who are struggling to make ends meet. They may be able to offer alternatives such as a lower interest rate or extended repayment terms
Please feel free to contact SMEAdvisoryunit@fcmb.com for any support you may require to grow your business.