Many small businesses have a need for outside capital. The reasons can vary from growth, cash flow smoothing, and meeting payroll to start-up funds. With the recent upheaval in the financial markets, finding funds can be challenging. Here are some points to consider.
Banks with assests exceeding $10 Billion are governed by new regulations that make it harder to receive loans from them. They are only approving 1 in 10 small business loans currently, the rest of the industry is approving around 45%. Choose your bank well if you’re looking for a loan. Try to use local and regional banks/institutions, they are more willing to work with you and can make decisions locally.
Having a solid business plan and model can also help capture a loan. Showing that you’ve thought through your business, have financial projections based upon analysis and a business model and represent less of a risk can go a long way towards securing a loan for your business.