You may find yourself from time to time cash strapped whether it is personal or for your business. How can one manage the situation without creating a financial crisis?
Here are 3 important tips you should know when you borrow:
- Before you borrow money, seek advice from financial experts to help establish if you need to borrow and how much. Listen to different points of view that will help you make decisions based on facts; that way the money borrowed will not be a burden to you or your business.
- Be clear on why you need the money and the exact amount required. Be careful not to borrow less or more than what you require. Before you borrow establish whether you can raise the money in another way. Suppose for example, you have an order to supply facemasks but don’t have the money to buy from your supplier, you could opt to negotiate credit terms with your supplier and if you’re successful, you may find you do not need to borrow. And if your supplier is not willing to give you credit for the full amount then try and negotiate credit for say, half the amount. If that succeeds you will only need to borrow the balance.
- Prepare in advance all documentation to support your application. This will hasten the loan application process. Ensure the information provided is accurate and always maintain honesty.
