What To Do If Your Business Loan IS Approved
Written by: Rebecca Game
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
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, you're 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
- 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
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.
About the author:
Rebecca Game is the founder of Digital Women ®, an online
community for women in business. A 30 year entrepreneur and
dedicated to helping other women find business loans. Visit her
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