Need cash to expand your business? Consider these steps to secure a business loan:
Do your homework. There are many types of business loans available, each with pros and cons. Before you apply for a business loan, assess the fit relative to your needs. A bank's relationship manager will guide you, but don't start the process blind. And don’t rule out the possibility of other sources of growth capital - besides senior loans - for the money you need.
Craft Your Story. Each lender will have their own requirements, but all will want your story. Your pitch should include a business plan, historical financial statements and financial projections. Remember you only make a first impression once so take it seriously.
Go Shopping. Ask for referrals from your finance team, CPA or business associates you trust. Discuss your deal and get to know each prospective lender. Pricing is important and covenants are critical, but the relationship with your banker is of paramount importance. You need a bank and banker who will be true partners, through thick and thin. Ask for a proposal. It’s not unusual to receive proposals from two or three lenders. Review the proposals with your finance team or CPA and pick the package that hits all of your criteria.
At Driven Insights, our bookkeepers and controllers are charged with much more than simply “doing the books”—they take the time to understand your unique business challenges and provide financial information that will support more educated decision-making. With a full understanding of your objectives, we will help you define the metrics and analysis you need in monthly reports and dashboards. The professionals at Driven Insights are also trained to spot any red flags in a business's financials that might trip up a loan process.