Starting a brand new business may seem like a tough call to make, but once you have all your figures sorted and your business plan on the go, you can take the final steps into opening up your own business. If only it was as simple as going to the bank and asking, “May I have a loan please?” Your bank will loan you the funds if they know that your business can be an asset to others and if you’re going to make secure financial decisions. They need to ensure you won’t plunder away all the funds. Set up a winning transportation business plan and be confident in yourself.
Protect your credit record
Bad credit will negatively impact your chances of getting a loan from the bank. No matter what your reasons may be, to the bank you’ll be seen as a risk. It’s a tough situation, you want to start your business to get out of debt, but you can’t get a leg up from the bank if you are in debt. Be sure to have the correct documents to apply for a business loan. Contact the bank before hand to inquire what you need to bring along with your application.
Talk about your expertise
The bank would want to know what is your motivation behind starting your own business. They also want to know how you will be able to sustain your transportation company. If you have any expertise in the field of travel logistics then mention this in your proposal. Remember, you’re selling yourself, and need to know what you’re talking about. They are more likely to provide a loan to someone who has background knowledge than to someone who has none. Tell them how you plan to start out, if it’s with one used nissan bakkie, then so be it. It shows determination to start small and work your way up.
If there’s no luck at the bank
If the bank declines your application for a business loan, there’s still hope. Look into government funding for small business operators. There is a range of government funds available for those who are looking to establish new enterprises. Government Funds is an organisation which provides South Africa’s historically disadvantaged people the opportunity to start their own businesses. A helping hand like this could provide you with the leg up you need to get your business going.