Securing A Loan
Today, we have a guest post from Sil Silvestre of iMoney.ph talking specifically about this subject.
one of the most tedious tasks you may encounter in your life, and after
all you won’t be getting loans if you don’t need it, right? So you shop
around for the best deals, asked friends for recommendations and even
went as far as browsing the internet for bank info and feedback just to
make your decision in all 50+ pages on that forum and yet your loan
application was unapproved. Let me tell you my friend, you are not
alone! Loans unapproved are common.
why. Banks operate by the money of their depositors, and if you were a
depositor, you want your money in full and in peace whenever you
withdraw it. Banks work in a philosophy that the probability of loss is
less than the interest rate they can collect from the loans they lend.
So if there are only a few deposits in the bank, the chances are steep
in having your loan approved. (Do you know that only 2 out of 10
Filipinos have a savings account?)
for every type of business, bank officers know the profitability if it
were to become successful or not. Let’s assume you are starting your
business and going to loan an amount of P200, 000.00 at 10% interest.
For this example, bankers would have a target loss of 8% and the success
rate is at 50%. So if worst comes to worst that this business would lose half of
the money loaned, it reduces the success rate to 25%, which in fact is
much higher than the target loss of 8%. That gives a red alert to loan
officers to not approve the loan.
1 Attract Investors
business. Word of caution: You have to have a real team behind this so
that you can have the investors’ confidence in what you are doing.
2 Raise Equity Capital
can be in the form of office equipment, machines or a car which later
on if you ask for a loan can be a form of collateral. This is necessary
because even if your business fell short on expectations. Banks can just
get these equipment so they can recover the loss from the loan you
Sil Silvestre is a product developer for iMoney.ph. Please head over to their site to see a wide variety of bank comparisons – loans, credit cards, time deposits and much more.
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