New project in Israel

When you apply for a loan, financial institutions look at 4 aspects of your business:

• your work history,
• the viability of your project,
• your financial strength,
• your personal guarantees.

Applicant's work history

Bankers try to assess your ability to manage the project in Israel.

You need to demonstrate that you have the experience, skills, determination and confidence to bring your project to fruition.

Project viability

You need to present a clear, well-structured and concise business plan that also covers all aspects of your business project.

You'll need to provide financial forecasts covering at least three years, as well as an analysis of market size and potential, and your market positioning.

Read also: How to write a business plan.

Read also: How do you present your business plan to investors?

Financial strength

You'll need to tell the banker your personal net worth and the company's net worth (assets minus liabilities), so that he can judge your ability to meet your financial obligations.

The banker will also examine your credit history.

Personal warranties

Bankers often ask for assets as collateral for a business loan. They invariably require a down payment from you as proof of your commitment.

Probably the most important thing is that your business project is more than just an idea.

Before you go to a bank to ask for financing, you need to be able to anticipate all the questions they're likely to ask about your business, and answer them in detail (how will you go about it, and what potential does your business have?).

You should also have a clear idea of what your company will look like in five years' time and the steps you need to take to get there..

If you can convince the banker of the seriousness of your objective, many of the other requirements can be negotiated.