This is probably one of the most difficult questions to answer because every lender is different; some are just doing it by the numbers and looking for the best possible return and investment opportunities, some on the other hand are actually in your corner and will overlook imperfections in your credit and lack of assets.
Funding Tips
A couple things to keep in mind as a general rule of thumb will be listed below. These are really solid tips that can give you an advantage. It’s always great to know what a lender is looking for:
- Risk on your end. They want to see that you have invested money or assets into the business and are not riding on someone else’s (their) dime.
- Realistic and well documented financial statements. Your cash flow predictions need to be realistic for your market- not pie in the sky. Lenders respect solid planning and evidence of prior successes.
- Already having a bread and butter resource in place, i.e. solid government contract lined up, signed leases from tenants, etc)
- Your personal obligations are met. They want to see that your personal life and the liabilities (car payment, mortgage, etc) you already have are paid on time and in full.
- No bankruptcies. If you have one, you better pray it isn’t recent. This is a huge turn off for any bank or lender.
- When you fill out their paperwork, you are complete and thorough. Bank managers or underwriters aren’t going to give you a courtesy call; they will just deny your application.
Getting Financed isn’t Easy
Getting your business financed isn’t easy by any means, but when the goal is accomplished it will help you sleep at night. Your business needs to mean the world to you and you need to show that to prospective lenders. Also, remember the golden rule of lending: competence breeds confidence. The more you know about the loan you want and the banks that offer it, the more you can exploit the situation and garner a favorable result for yourself and your business.
From all of us at StartupLoans.org, we wish you the best and hope your business and personal life are nothing but successful.
Don’t forget, StartupLoans.org offers loads of valuable content and free business forms for your business. Take advantage of our 100% free (as in $0) resource.
