Lets face it, business owners need money to grow. If you have exhausted all other options, it might be time to go after a bank loan. However, you will need to have your information in order. Inc. has recently shared a list of tips for people that intend to use collateral to obtain a business loan.
1. Keep Detailed Records of your Asset’s Worth
If you’re not sure of what your assets might be worth, it could be worthwhile to find an independent appraiser to give you an idea of how the bank will value your property.
2. Know What You Can Use as Collateral
- Real Property
- Business Inventory and Accounts Receivable
- Cash Savings or Deposits
3. Understanding the Risks
Be realistic about your company’s needs, and how the company will be using the funds. A financial advisor will help you assess the risks involved, as well as the odds of the loan being successful.
4. Negotiate Whenâ€”And Ifâ€”You Can
Be wary of predatory lending practices that could end up being expensive and harmful to your business.
5. Consider Peer-to-Peer Lending
While loans typically amount to less than $25,000, there’s often less red tape involved in obtaining a peer loan.
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