What are the 7 Ridiculous Things Keeping You from Getting Small Business Loans
You look into the abyss. You don’t know what to do. It wasn’t supposed to be this way. You’ve worked long and hard and you feel a bit like Sisyphus.
You know the character. In Greek mythology, he had to spend an eternity rolling a boulder uphill then watching it roll back down again. It seems no matter what you do getting a business loan is too elusive.
You sweat the details but it just doesn’t matter to the bank. You plead you prod but to no avail.
Should I give up?
I believe there are a few things you can do immediately in your business that can have a huge impact on your businesses bottom line. More importantly, these few steps can make you a lot more bankable.
If the banks do not want to lend you money, any top alternative lender would be more than happy to fund your business.
Let’s look at what’s potentially holding you back.
6 Factors That Keep You from Getting a Small Business Loan By Paula Fernandes, Business News Daily Contributor February 13, 2017 11:16 am EST MORE Credit: Money image via Shutterstock For many entrepreneurs, a small business loan is an essential way to finance a new business or expand existing operations. However, obtaining funding for your business is no easy task.”
Personal and Business Credit
Check your scores before you apply. You can pretty much get your FICO or personal credit score free without having to give a credit card. Business credit is a little different. However, it’s worth it. Big time.
Invest (send) a few hundred dollars to get your three business credit bureau scores. Trust me; it can be a real eye-opener if you’ve never done it. Just don’t tell me you have a good Paydex score.
Easily two of the most powerful words in the business dictionary. The secret here is simple. Ask yourself how much money you have left over at the end of every month. Be honest. None?
A few hundred dollars or in the thousands.
A better question to answer is “what is my average daily balance?”
Does it fluctuate wildly or is it consistent?
Why is that important? Simple.
You must have the ability to repay the loan. It doesn’t matter if you must make daily, weekly or monthly payments, you need to have a stable cash flow. Month in, month out.
Do you have good books and records? I don’t care what your shop floor looks like. It doesn’t matter to me (maybe to your customers) if your shelves are messy. But when you come to me asking for a business loan, whether it’s an SBA loan or term loan or maybe a loan for equipment, and I request some documentation, you better produce it fast and in order.
Take the five minutes necessary to make sure your business records are in order. If they are not, spend perhaps no more than an hour or so to clean those files up.
Get Advice – preferably from an expert.
Are you asking your bookkeeper about business tax matters? Do you have a friend that works in a law office (but not an attorney) about business issues? Or maybe the guy at H&R Block about how you should structure your business? You get what you pay for. Think about it; you’re asking a business lender to lend you money.
The least you can do is present yourself in the best light.
Does it need an adjustment? Just because you’ve been in business for 13 years doesn’t entitle you to anything. Have the passion for your business – yes. Bring a little humility as well. It’ll go a long way.
Know your numbers
Why do you need the money?
What will it do for you?
You need a 100% to pass this test with anyone you ask to invest or lend you money.
to speak to one of our professional funding advisors who will help you determine how to get a business loan.
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