Getting the money for your business
Review your business plan and ask yourself, “can I afford it?” Ideally, you should be able to finance your business out of your savings, but that may not be the most convenient option for you and you may choose to apply to the bank for a loan. Most banks in the BVI provide business loans for small, medium or large ventures. Talk to your bank to find out what they offer to startup businesses.
It is very important to have projected financial statements for your new business, especially if you intend to acquire a bank loan to help finance it. Projected financial statements attempt to predict expected income from the sales of services and goods as well as detail predicted expenses. This will show your bank whether you’ll be able to pay them back. If predicted expenses add up to more than the predicted income, banks will find it difficult to approve a loan for your business because you will be unable to pay them back. You should also attempt to calculate the kinds of expenses you may incur in the day-to-day operation of your business, e.g. overheads and monthly rents or leasing agreements. Do you own the property that your business will be on? Are you leasing or renting a space for your business? This should be considered early and worked into your financial plan.