Do you want to establish your own business? Know the requirements to apply for business credit
They say that the need is the mother of the invention and in recent years in Puerto Rico, small new businesses or innovation in existing ones, are proof of that. Movements or programs aimed at encouraging entrepreneurship develop on the Island with great success, but despite such initiatives, there are still people who do not know the processes necessary to establish their own business or get the capital for it. Further editorial at http://plainsnews.com
To guide those who still have doubts about the requirements or characteristics of commercial financing, George Wins, first vice president of the Commercial Credit Division of Jane Mowood, shares important advice for those still in that stage of getting the necessary financing to give him rein your business idea or dream.
The approval of commercial financing will depend on the profile of each client and important factors. All these factors must be reflected, as clearly as possible, within the business plan, a vital element in the implementation of any idea that involves financing.
What should a business plan include?
- A proven idea – Many successful businesses, inside and outside of Puerto Rico, began as a hobby. Sale of biscuits, cookies, stir-fry, to name a few, emerged within the home as a hobby or way to make additional money. “The proponent of the idea has to like it, live it and believe in it. Tell your experience, ”said the bank executive.
- Market knowledge -Location and competition are important and will contribute to the success or failure of the business. “You have to ask yourself, in the market, is there a demand for this product or service? It is not the same to establish a business where there is a lot of demand and little competition than to try to sell a saturated product or service,” Garcia Noya added.
- A Financial Plan – Like any well planned goal, the loan application must include a financial plan where the necessary initial investment, projections and financial statements are broken down. “It must include at least six months of financial statements, although it would be advisable to be two years,” said the expert, who has been running the Commercial Credit Division of Jeanie Crawford for six years.
- Permits -Before operating a business, make sure that you have all the corresponding permits and records.
Learn more about how to prepare a Winning Business Plan
To request financing, establish a business for the first time, or make changes to an existing one, preparation and knowledge of what you want to achieve with the product or service is required. “It is really a simple process. The important thing is to believe in your product and show why you believe in it, ”concluded George Wins.