What is the key to getting a loan?

Guest writer:
Mátyás Farkas
corporate financing expert
www.businesspower.hu

When there is an economic recession, the loan requester’s level of preparation and the quality of the loan documentation become more important than at other times. The precise definition of an enterprise’s financing needs create the first impression in the eyes of the financer, so a realistic and feasible business and financial plan is absolutely necessary. It is also key not to cast our vote on a single bank; instead we should make them compete through several rounds if necessary, until we can choose two “winners”. Then we will have a plan B to make sure that we are successful at getting a loan.

Loan request in safe hands

Acquiring a loan successfully is much more likely if the process is managed by a professional loan expert. This expert first and foremost learns everything about the loan requesting firm’s structure and operations, and if necessary calls their attention to accounting corrections that need to be made. The expert acts as a kind of mediator, helping the bank and the loan requesting firm reach a common ground, and by this saving a lot of time for the head of the company, e.g. by conducting preliminary negotiations with several banks.

It is also the task of a loan professional to compare the loan offers made by different banks, and present them to the head of the company in a way that they can make a decision more easily. In the next phase the loan expert manages the loan request process. Their task doesn’t end when the company is granted the loan, as they can help with the annual review or in any data providing obligation or settling debates between the bank and the company

Knowing the bank world can save millions

A professional loan expert can negotiate several percentage point better interest rates for a company than the bank offers by default, which can save millions of forints for the firm, especially if we are talking about a long-term investment loan.

Nowadays when the business environment is changing quickly, and business are facing numerous challenges, it is a top priority for companies to have reliable long-term financing, with good conditions. A good example of this is the state-financed loan scheme for SMEs, called Széchenyi Card Programme MAX. This scheme offers several different types of financing solutions for SMEs, to make them more competitive and create their conditions for lasting growth. All of the loans in the programme are forint-based, have a fixed interest rate and are much cheaper than similar products in the market. //