This seems tedious, and is actually more than it seems!
But although the test seem difficult, it is not insurmountable, and in addressing the case of some entrepreneurs who have managed to gain the trust of their bank, you come out some tricks to be convincing against his banker .
Jules and Matthew, founders of www.solendro.com, the leading online store for underwear for men, which was launched in September 2012, took more than three months and fifteen agencies contacted before getting a loan of € 70K to start their business. Emerge from this difficult experience some tips for entrepreneurs looking for a bank loan:
Present a flawless business Plan
What the banker will first seek out your business plan is the profitability of the business to make sure that your company will be able to repay its debts. Unlike an investor, the bank does not particularly interest in what your business plan has a very high net profit in the first year. Instead it might sound too optimistic even make you lose credibility it!
So profitable in the first year, it is absolutely necessary but not too beneficial either.
To build credibility, the idea is to show that all contingencies have been taken into account by presenting three scenarios: a pessimistic, realistic and optimistic. Of course in these cases, even the worst, your business is profitable and you will be able to repay your debts.
Who should I contact?
Each bank has more or less its specialty in terms of credit analysis.
Furthermore, the analysis is often done in an agency and not centralized in the network, an agency may deny your application for credit, while another branch of the same bank will accept it.
So to increase your chances of acceptance, enter into relationship with priority or regional mutual banks will be more likely to grant a loan to creation. Target also specialized agencies in your industry and especially multiply the number of agencies contacted.
Banks are not necessarily specialize in your industry and may struggle to understand the ins and outs, so to validate your project beforehand by follower network (Paris Initiative, Entrepreneurship Network etc.) entrepreneurship will trust the bank.
Besides, why deprive yourself? The support networks are free, they provide valuable advice and some of them are doing the same guarantee bank loans up to 70%!
Finally, it is very rare to get a loan from his first meeting with his banker. With this in mind it is best to start by meeting banks identified as the most difficult to convince, even wiping some trainers even refusal, to your next appointment.
Good luck to all contractors are currently looking for a bank to help them get started!
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