You have determined your needs and the financing tools available to meet them. You’ve also created a network of people you can consult if needed: other entrepreneurs, a mentor, your account manager, financial experts, your local chamber of commerce and business associations. The next step consists of preparing your request for financing.
Write your request
Your request for financing complements your business plan.
The document includes:
- the nature of the project for which you are seeking financing
- the amount requested
- how the funds loaned will translate into financial benefits, allowing the company to continue to grow while meeting its financial obligations
- what you can offer the lender
Submit your request
Before your meeting with your lender, forward a copy of your request for financing and business plan so he can familiarize himself with your project.
Prepare for your meeting with the lender:
- State how much time you would like to have with him stay within the time limit.
- Plan on briefly presenting the main points.
- Try to anticipate the lender’s objections and place the emphasis on the points that require explanation.
- Ask a professional (accountant, attorney or other) to come with you to explain elements that require his or her expertise.
- During the meeting, be aware of the lender’s comments and reactions.
- Tell the lender you are available to provide him or her with additional information if required.
- Ask the lender what the next steps will be.
If your request for financing is approved by your account manager, you’ll work out the agreement signing procedure together.
If your request is denied, see it as an opportunity to improve your project. Ask the lender what motivated his decision. The information you get about your business plan or approach is precious, since it is likely you may need to approach this financial institution for financing again at some point in the future.