We’ve all heard it…”Banks only want to lend to those who don’t need a loan…”
What does that really mean? How can you, as a small business owner, prepare to present yourself in that first conversation about the possibility of qualifying for some bank financing? It can be an intimidating thought, but here are a few pointers to consider in advance:
Get your house in order
The first thing a lender will want to see is some historical financial information. You don’t need to go into the first conversation with a full set of audited reports, but make sure you know your basics. Your revenue- how much you sold last year. Your profit – how much you made after all expenses. Your margins. How many customers do you have? What are your plans for this year? What’s your market like these days? Any business owner knows these to some degree instinctually, but if they have reviewed and rehearsed the factual information, and their style of presentation, it’s a huge advantage. Go in prepared!