Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsratios. Make sure these ratios on your forecasts are within the acceptable levelsand that you understand what the ratios mean. Furthermore, a good presentationwill include discussion on the sensitivity of the ability to repay the loan. Thismeans you know where the risks in the forecast may be, and have thoughtabout potential fallback plans in the event the activities do not go according tothe plan.Be confi dent when you present your loan application. Dress for success. If youhave forgotten something, don’t get fl ustered. Explain to the lender that youhave forgotten the item and that you will deliver it later that day or the followingday. The same goes for any additional information that the lender may requestthat you have not included in your application.TIPWhen applying for a loan, always meet your banker in person to discussthe applicationThe Role of AdvisersAccountants and business advisers can assist in preparing a loan application.They are well versed in translating your future ideas into fi nancial forecasts andto emphasise the potential areas the lender will focus on. You may even wantto practise your presentation with them. However, it is important to rememberthat the fi nancier will be looking at your ability to manage the future growth ofyour business, so you must ensure that you fully understand the informationyou present.ConclusionIf your loan application is denied, fi nd out as much as you can about why it wasnot successful. This will assist you in any future loan applications that you mayconsider. Above all, remember that the lender is in the business of providingloans, and therefore will be looking for future business. Often loan applicationsfail not because the business is too high a risk, but more likely because theloan application was poorly prepared, indicating a lack of understanding, whichsends immediate warning signals to the lender.For more information on applying for a loan for your business, you can refer tothe respective web sites of potential lenders or www.bankinginfo.com.140chapter 7-13 p79-181 Eng.indd 1408/15/11 5:03:05 PM