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Money Coach

Do your part before – and after – you sign on the dotted line for that business loan

Your business loan has been approved. Congratulations. Your business has now received the financing needed to open or expand your business. But before you pop the champagne and propose a toast, you should remember a few key rules before signing on the dotted line and picking up your check.

Make sure you thoroughly review all loan documents, and understand what they mean before you sign and accept the loan. If you don’t understand something on the documents, ask the lender to explain. If the explanation is not clear, ask for further clarification, or ask for a copy of the paperwork to take with you to review. Don’t hesitate to consult your attorney or accountant if you have questions.

Return all the required documents to the lender on time when your business loan is approved. There will be a number of documents and required paperwork the lender will need before you can close on the loan. You obviously made a good impression with the lender, or you wouldn’t have been approved. Keep that good impression by promptly responding to requests for additional documents, information and credit references.

Now that you have the loan, be sure to take the time to review your business’ situation. Take another look at the goals and objectives of your business. Review them weekly if need be, to keep you business on track.

You should also take another look at your loan proposal. But you should remember why you applied for the loan in the first place. Review the ideas behind obtaining the loan, and work toward achieving those goals.

Maintain close contact with the lender after the business loan is approved, and let him know how things are going. This could prove advantageous in the future if your business has need of the lender’s other services.

And remember, if there are any problems immediately after the loan is approved, contact the lender immediately. If you’ve hit a snag, inform the lender before anyone else does. Lenders don’t like surprises, but they can also be helpful and can offer solutions or assistance to aid you in resolving your problems and getting back on track.

The key to the whole business loan process, clearly, is good communication. By making sure you understand the process, the paperwork and the progression both before and after you sign on the dotted line, you’ll make good use of the loan you’ve acquired.

Published Feb 17 2011, 10:19 AM by moneycoach
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