Bank Loans

Bank loans

Bank loans are a tried and tested method for funding just about any business idea. This has both its advantages and disadvantages for mobile app development.
One the one hand, Australian banks have been loaning money for so long that the criteria has been carefully refined so there’s very little left up to chance. That doesn’t mean applying for a bank loan is necessarily easy, but it is transparent in exactly what you need to do to meet each bank’s loan criteria.
Bank loans
On the other hand, much of this criteria was developed prior to the technology explosion we’ve seen over the last couple of decades. As an entrepreneur with a great idea and a desire to get it to market quickly, you might find the checks and balances that go into securing a bank loan a little tedious.
The key here is to stay focused on your goal of securing funding, and remember that with due diligence, you can bring your app to reality.

Tips for securing a bank loan

The most important thing to do in securing a bank loan is to start the process as soon as possible. It’s a lengthy process that takes time, diligence and a bit of trial and error. Fortunately, many of the steps you take in securing a loan will also help you to develop a better understanding of your business.

Develop a kickass proposal

The key to any bank loan is your proposal. It needs to conform to all the requirements most banks have to even consider before offering you a loan. Fortunately, developing a great proposal will make your business more attractive to future investors as well.

Key questions

A good starting point for any proposal is to write down answers to the following questions:
– What is the overall vision for your business?
– How does the app fit into your vision?
– How much do you need to loon?
– How soon can you pay it back?
– Is there any existing collateral that can be offered up to secure the loan?

Use a template

The Australian Government offers up a handy template for businesses to help guide them through creating a business plan. There’s even a mobile app version. To help you get started, here’s the four essential sections you need to know.
– Your Business
– The Market
– The Future
– Your Finances

Your business

In this section you outline all the important details about your business. You’ll want to be as thorough as possible, including granular detail to paint a clear picture of the functions, structures and legal frameworks of your business.
Expect to include:
– Business name, date of establishment and registration details
– Structure of business (Are you a sole trader, company, trust, etc.)
– Products and services
– Locations
– Key personnel
– Legal and regulatory obligations and considerations
– Risk management policies

The market

In this section you define your target markets, demographics and communities, including:
– Who is going to use the app
– What is your marketing strategy
-Identifying any Strengths, Weaknesses, Opportunities and Threats (SWOT).
A strong SWOT analysis shows an understanding of your position in the broader market and is essential to securing a business loan.

The future

Here you want to state future strategic vision for the app and your company. Focus on long and short term goals and add a mission or vision statement to your proposal.

Your finances

When dealing with banks, you always want your finances section to shine. Consider:
– Current financial position (costs, incomes, existing loans)
– How much you want to borrow
– The schedule on which you can pay it back
– Profit and loss forecasts
– Balance sheet
If you’re struggling with the finance component, talk to your accountant, and they can probably provide you with essential details quickly and easily.


When applying for a bank loan, it’s better to be too diligent than underprepared. In general, banks thrive on information, and their decisions are based on highly specific criteria. You don’t want to miss a single piece of necessary information, while there’s no penalty for going into too much detail.

Seek advice

Before applying for a bank loan, be sure to ask yourself:
– Why do I need this money?
– Does the amount adequately cover what I want to achieve?
– Can you break down the amount into actual expenses that will result in realising your
projected goal?
It’s probably a good idea to speak with a mentor, financial planner, accountant and a software developer to be sure you’ve done due diligence. It also shows bank lenders that you’re not acting alone and have the capacity to reach out to others for assistance.

Put yourself in the bank’s shoes

When applying for your bank loan, the right mindset will help to smooth the process. Put yourself in the bank’s shoes. Would you lend money to your business? If the answer is only ‘maybe’, then you might want to do a little more work on your proposal before hitting submit on that application form.

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