Are you looking to secure a loan for your business? We’ve got 7 great tips that will help.
According to Bankrate, since 2008 loaning to businesses is down over 10%. “That trend is continuing; times are very tough.” says George Cloutier, chief executive of Orlando, Fla.-based American Management Services, a consultant to small businesses. Let’s face it, small-business owners remain uncertain about what 2014 holds for their businesses and the economy.
The good news is that banks want to offer you a business loan; it’s just that many banks are not able to properly scale their resources to include all deserving borrowers. If your business needs a loan, or credit to help grow the business, make repairs, purchase equipment, or other property, there are a few things you can do now.
- Get your financial house in order- you need to be able to tell your story in terms lenders can understand. Have a complete vision about what you propose to do with the loan, and how it will affect revenues.
- Have a written business plan that has been updated. Include information about your industry growth and any third party partnerships.
- Use local institutions– Community banks are great. Also inquire about SBA loan programs.
- Check Out Government Websites. Business.gov and Grants.gov are two websites that feature a listing of grants offered to businesses from the United States government.
- Get to know bank executives and what their goals are.
- Be able to articulate your firm’s “value proposition” to its target markets and your business plan to reach them.
- Don’t ask for loans that should be funded with equity injections. Bankers typically take equity risks.
