HOW TO GET BANK LOAN FOR A DISTRIBUTION BUSINESS

There is different between macro and micro finance bank loan you need to know more about before you can get loan for a (distribution) business. Okay? Now, both macro and micro finances are macro and micro lending to any person who are traders, small-scale businessmen and medium-scale businessmen.

Both macro and micro finance banking system are also a way developing the SME sector and macro-and-micro businesses. The difference between macro finance and micro finance is that for micro finance loan, micro finance banking officers lend N50, 000, N75,000, and up to N100,000 or N200,000 to small traders and small-scale industries. 

In converse, for macro finance loan, macro finance officers lend N500, 000 and up to N2million or may be N5million to medium-scale industries. The word, ‘macro’ means large while the word, ‘micro’ means small.

Nobody can grow fast business without using the leverage or with his/her own pocket. If they use their own pocket to trade or to produce a product and sell it to people as a distributor, it may take them longer to grow big business. But if they use the leverage which is called loan for business, it may take them short to succeed in big business. 

That is what Robert Kiyosaki said the rich (businessmen and investors) use the leverage to get so rich while the poor or middle-class people use the leverage to get poorer. He was right because I remember that my deaf female small-scale trader sold different types of candies, sweets, biscuits, cookies, etc with her own pocket, but her profit was little because she bought only sachets in pieces. 

So she decided to use the leverage to get fast money daily selling by borrowing from her friend to buy different types of cartons. Therefore, any person who wants to make good money must go and use the power of leverage to make fast turnover. 

They should use the power of leverage which is called macro-and-micro banking loan to sell either product(s) or service f his or her friends or relatives can’t or do not want to assist them out. Before getting bank loan, you need to have good business plans like architectural plans.

If you understand what the architectural plans means, then you will understand what business plans are. No bankers will like to lend you money for business until you are good at business plans which are called business financial literacy. When a banker finds you want to borrow money from him or her for your business, they will ask for your financial statements.

If they ask for your financial statements, they will want to look inside you or your company, not your hot product or service. Why? It is because they want to know or see how your money goes out and comes in or where they go out or come in during your business.

That is what I call a good bookkeeping or stock record in your business. Therefore you must master business account or develop business financial statements before you can get either bank loan or macro-and-micro bank loan for your distribution business. If they find you are so good at stock records, they will lend you quickly. 

For more knowledge about bank loans, I highly recommend you to check headlines I posted preview articles below. Lastly, I would like to drop my pen here. Any comment, any question or add it, you are welcome to drop your comment here below in this comment box.

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