Say that you or your business doesn’t know how it would pay off the mountain of debt it has from its line of credit or loans, then it will definitely make lenders lose their trust and confidence in extending additional credit to you.
What are Your Odds?
See to it that you have paid loans and keep low balances on the line of credits you have. In the event that you cannot afford to pay debts promptly, then consider negotiating with them. Majority of the credit card firms are willing to offer low rate of interests. This means that you could pay off your balance faster without all the interests tacked-on.
On the other hand, without having a solid and structured business plan, investors will definitely trash your application.
So to be certain that you will get an approval after it has been submitted, see to it that you’ve updated your business plan and that it thoroughly demonstrates the following:
- Well-researched
- Proof that you know who your customers are
- A mission statement
- Goals
- Has calculated estimate of sales and;
- Projected profits
What do the Authorities say?
As per the SBA or Small Business Administration, it is recommended that on top of the business plan, you have to prepare your resume, ITR, personal background, bank statements, financial statements as well as legal documents.