The other crucial factor is your cash flow projection statement, which gives the lender an idea of how quickly the loan will be repaid. Any lender is going to require a cash flow projection for each month for the next year and probably annually for the next few years. To prepare a cash flow statement, talk to suppliers, trade associations, or people in the same business to gather realistic estimates that you can use in your projections. But don't approach several banks at the same time since each request shows up on your credit report. So whether it's a matter of reviewing your business plan or exploring alternative loan options, stay persistent.
Chances are there's a solution just waiting to be discovered.
Get a fair assessment. When preparing a cash flow statement, be sure not to curtail the research in this area because you'll be required to justify your figures in writing. Watch the interest rates. Since microloans are higher risk loans, interest rates are also higher - the maximum interest rate could exceed the prime rate by about 4 percent. The McGraw-Hill Companies Inc. All rights reserved.