What To Do If Your Business Loan is Approved
What To Do If Your Small Business Loan
is Approved
Your business loan is approved. Congratulations!
It's one of the most exciting phone calls you can receive as a business
owner. It means that your business has received the financing that you've
desired for opening your new business or expanding your existing business.
Obviously, a celebration is in order! However, before popping open that
bottle of champagne and proposing a toast, remember a few key rules before
signing on the dotted line and picking up your check.
- Thoroughly review all loan documents,
and understand what they mean before you sign and accept the loan when
your business loan is approved.
If you don't understand something on the
loan documents when your business loan is approved, ask the lender to explain.
If you feel that the explanation was not clear, ask for further explanation,
or ask that you receive a copy of the paperwork to take with you so that
you can review, read, and research. Consult your attorney or accountant
if you have questions.
- Return all required documents to the
lender on time when your business loan is approved.
When your business loan is approved, there
will be a number of documents and required paperwork that the lender will
need before you can close on the loan. Your proposal and ideas were obviously
impressive enough to the lender for them to them to tell you that your
business loan is approved. Keep up that good impression that the lender
has of you by promptly responding to requests for additional documents,
information, and credit references.
Once your business loan is approved and
your money is in your account, take your time and review your business'
situation with care.
- Turn to your business plan.
Review the goals and objectives of your
business, and review the information that you gave to the lender. The lender
was impressed enough to offer you the money for your business - impressed
enough that your business loan was approved. Refresh your memory regarding
your business. Read your business plan weekly to keep these ideas continuously
in your mind so that you can stay focused. Remind yourself daily why your
business loan is approved.
- Turn to your loan proposal.
Yes, turn to your loan proposal. It seems
odd to consider the loan proposal now that your business loan is approved,
and now that the money is in hand. However, recall the reasons why you
wrote the loan proposal and why you applied for the loan. The loan proposal
served the purpose of demonstrating to the lender that you are a trustworthy,
business-minded, energetic, responsible individual with a great idea for
your business. The proposal also stated the items that would be purchased
with the money. Review the ideas behind obtaining the loan. Keep your self-esteem
levels high, and work only to succeed. Purchase only the items listed in
the loan proposal, and use the money for nothing else when your business
loan is approved. To find business success, stick to your initial goals
for the loan, and maintain financial control of the money. Remember, you
have not won the lottery. This money needs to be repaid in a timely manner.
Additionally, lender communications are
very important, and much appreciated by the lender, when your business
loan is approved.
- Maintain close contact with the loan
officer when your business loan is approved.
Before you close on the loan, keep in touch
with the loan officer to let that person know of your progress in gathering
your final information needed to close. After closing, check in periodically
with the loan officer to fill him or her in on how things are going with
your business. When your business loan is approved, the lender has a vested
interest in both your personal and business success, and will appreciate
your efforts in keeping communications open by offering current information
about your business. Keeping the line of communication open will allow
you to possibly take advantage of the lender's other services, which may
be needed by your business down the road.
- Communicate any business problems to
the lender immediately.
Lenders don't like surprises, particularly
if it involves bad news. Be honest, and if you've run into a snag, inform
the lender before anyone else. If you prosper, the bank will prosper. If
you fail, the bank fails. By being open and honest if something doesn't
work out after your business loan is approved, the lender may be able to
offer solutions or assistance to help you resolve your problems and get
back on track. Hiding the problems, or worse yet, ignoring the problems
or becoming elusive will only make the lender leery of you and your business,
and may jeopardize your credit scores, or worse, your reputation as a business
owner.
Small Business Loan Resources:
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