The process of asking for money is usually quite straightforward and simple, but as with most things, the details are important. Entrepreneurs or individuals should learn how to make a loan, however, to get the best benefits and run the smallest possible risks. After all, the bank will be relying on the money to be repaid. And to gain that confidence, they need to understand several things at a basic level.
How to borrow from the bank: Understand your purpose
First, you should explain to yourself and the bank what the purpose of this loan is. For a company, for example, it may mean doing an analysis of competitors and making it clear how this loan will help leverage the company against the competition. In another example for individuals, it may be that the loan serves to finish paying for an emergency work. The important thing is to be clear about the purpose, write on paper and make it clear to yourself where the money from that loan will be applied.
Borrow from the bank: know how much money you need
It is good to make a simple list of items and the amounts of money associated with them. Possible items on your list: purchase equipment, a marketing campaign investment, a makeover, late payment bills, debt consolidation and working capital to support payroll and other expenses. Be sure to attach budgets as this can help the bank guide you to solutions other than the loan. This applies to companies and individuals.
Taking a loan at the bank is a delicate process, but it is possible to better guarantee success with the correct procedures. (Photo: Readers’ Choice)
How to Apply for a Loan at the Bank: Know How You Will Pay the Loan
It is no use submitting vague business plans, or simply going to the bank asking for a loan for whatever purpose. As the applicant for a loan, you have to make estimates and calculations of how much money you will be able to pay for a loan, what will be left over, and what are the loan discharge conditions. Your most important concern in the loan is knowing how and when the money will be paid back considering the personal financial condition or of your company to repay the loan. There must be money left over for all other bills and normal expenses. It is good to have a very detailed budget and financial planning to fit the costs of the loan.
What happens if the loan does not go as planned?
Suppose the company has a few difficult months, or you lose your job and are not able to repay the loan. What are you going to do in these situations? It can be difficult to visualize these possibilities when you are excited about the money of a loan. But it is precisely this excitement that can mean the failure of a loan and the way to the abyss of debt.
Take the time to make an emergency plan to repay the loan, such as seizure of assets, involve other family members in the loan or cut costs in the company. It is important to be prepared for all situations.
Gather all the necessary documents, and read the loan agreements before signing
CPF, CNPJ, proof of income, proof of residence, social contract, identification documents, among others, can be requested by the bank to guarantee the loan. Once you gather all the documents and before signing the loan agreement, it is important to read everything that is written there. There are some loans that in the contract, establish that they can not be discounted at discount. Check all the details and if you think it necessary, take it to a lawyer before signing.
Remember that a loan is a great opportunity to establish a relationship with the bank
You are building trust with the financial institution when applying for a loan and making the payments on time. This is something that will provide you with many opportunities, such as lower interest financing, investment opportunities and lines of credit for a variety of purposes. Make this loan an opportunity and cultivate a strong relationship with the financial institution. This will pay off in the medium and long term.