Ways to persuade lenders to fund your business
Being able to convince lenders that you have the capability of being successful in your business or proposed business is very important. No lender will want to borrow anyone who has not shown his or her skills to make a business successful. Securing finance whether through application, phone call, or face to face meeting, lenders are looking for that potential goal-getter that has the zeal and is able to function well in his or her proposed or current business
To be able to impress and show your lender those skills, there are several things to be put into consideration. You have to make sure you have thought through the answers to the possible questions that might be thrown at you, so that you can counter any objection thrown at you.
- Written application should also be able to:
- Have a clear response on what you want to use the money for
- Demonstrate you understand the industry
- Know everything about your business
- Lay emphasis on your relevant experience
- Justify every number of your finances
Rehearse and prepare
Get them assured about your business, be realistic, make sure your business plans gives a good head start and make sure your assumptions are justifiable
Here is a model that can help you, it is called the CAMPARI model
Character: can you show your business lender the ability and proof that you made money in the past? You should have business records of te success you have achieved in the past
Ability: what skills have you acquired in your field? Do you have any proven track record? Or do you have people included in your business that knows what they are doing”?
Means: what means will you make use of to pay back? Have a strong business model that’s is properly monetized and simple to understand
Purpose: for what purpose is the money needed for? Spell out your business goals
Amount: the amount needed should be properly stated and analyzed and hoe=w the money should be spent should also be spelt out
Insurance: do you have any plan B in case the business does not go the way you planned? Are you able to sort out for other means to get your loan paid back?
This should set you on the right track of winning your lenders heart. Thinking about your business from their point of view also helps