Impulse credit is regularly asked what the ingredients are for a successful credit application. It is a combination of various factors that are based on the soundness of the business plan, the belief in the feasibility of the plan and the person applying for the credit.
Tips for a successful credit application
Everything naturally starts with a business plan. You can read here about Impulskrediet's sound business plan.
In many cases we also find the building blocks of a business plan in the credit applications that we receive at Impulskrediet. The key question remains 'what makes sure that your credit application is actually approved'. In other words, how do you get a stronger file?
We are happy to help you with some tips that will make your file stronger. They are based on our experience at Impulskrediet. We also formulate questions that you can ask yourself. The quality of the answer to these questions determines the strength of your credit application.
Tip 1 - A complete financial plan.
Costs are often forgotten in the financial plan. Is there a wage foreseen for yourself, was social security, VAT and insurance taken into account, repayments of other current loans? Also remember that every employee or help in your case must also be reflected in the financial plan. Sometimes you also have to throw away supplies, there are also costs involved. Have you planned the necessary investments? These are some examples of costs that are often missing. It also demonstrates healthy entrepreneurship to provide a buffer for unforeseen costs.
Your sales must take into account any seasonal effects, such as: sales, summer months / winter months, holiday months, end of year period, etc. These are seasonal effects that will determine the evolution of your turnover during a working year. That means you won't sell the same every month.
Tip 2 - Your plan is substantiated
Remember to explain how you arrive at a certain turnover. How do you get that figure, what is it based on? If you can tap figures from your competitor or your predecessor (in the event of a takeover), then that helps. Do your customers pay immediately or do you have to grant them a payment period before they pay you? This can have an important effect on the time when you get your money in your bank account or in the cash register.
The same applies to costs. Why is it necessary, for example, to rent an expensive building or to lease a more expensive car? Is the wage that you want to keep viable? Is the purchase price you pay a correct price? If so, why?
The less guesswork, and the more objectively you can demonstrate what you write, the stronger your file.
Tip 3 - A specific plan of approach
Sticking numbers on your sales is one thing, but how are you going to realize those sales? The more concrete your approach is described, the more convincing.
We all know social media but how are you going to use them? Are you going to fly, if so where, when, etc? Advertising plans via print or online?
How do you organize your sales? Why did you choose the specific location of your building? When you start a webshop, map out all aspects for selling via a webshop, be aware of the pitfalls. You will find a lot of information online about starting a webshop.
If you don't sell through a store or online, how do your customers get to you or how do you get to them?
Which contacts do you already have, how specific are they, how many have you actually sold?
Make your marketing and sales approach as concrete as possible. Also remember that your approach will have an effect on your financial plan.
Tip 4 - A feasible (credible) plan
The feasibility of your plans is essential for you to maintain, but also for a lender. After all, it determines your repayment capacity. Be ambitious but realistic, and certainly not be overconfident!
Impulse credit sometimes sees revenue targets that are not achievable because, for example, there are insufficient working days in a year or working hours in a day to realize them with one person.
You should also take competitors into account for your sales objectives. Is there a lot of competition, which sales do they realize, what prices do they charge and how feasible is your approach. Also look at the strength of your competitors. A competitor with many more resources than you might be able to wipe you off quickly.
Are any (additional) investments required to achieve your turnover? A lender always checks whether the credit amount is sufficient to make your activity viable. Asking for a smaller amount does not increase your chance of getting a credit.
Can you only realize the proposed sales, or do you need help? And if you need help, check whether that help is visible in your financial plan.
Tip 5 - You as a person….
There is more than a good plan, Impulse credit also looks at the people who submit the plan. How do you come across, are you reliable, are you passionate, do you feel like it, are you convinced enough, are you sufficiently committed? Do you have the necessary experience and / or training? What do your professional past look like? Do you have the necessary competences?
Impulse credit finds it important that the entrepreneur also has a life besides working. Can you combine your job with your family situation?
Mental health is a determining factor for the success of a company. But your physical health is also important. Are you in good health to perform that specific activity?
We also think it is important not to burden people with even more debts. Impulse credit does not refinance existing debts. You may have debts from the past, but Impulse credit must be sufficiently convinced that the present business plan offers a way out.
Have you thought about a plan B, in other words, what will you do if you are not awarded the Impulse credit? Think about that already. Being prepared for this is evidence of sound entrepreneurship.
If you take these tips to heart, you increase the chance of a successful credit application.