The process to gaining capital for your small business isn’t always an easy one. From developing a relationship with your financier to creating an in-depth plan for your business, we have five tips to help make the small business loan process easier:
Check your credit. – Most banks will look at your business credit standing as well as your personal FICO score. Check your credit scores before applying for a loan. If it needs some boosting, work to restore your credit before applying for a loan.
Get to know your banker. – As a small business owner, you have to build a relationship with the bank and banker before applying for a loan. It is important to build trust, but also for the bank to understand your business and your goals. Banks can do more than lend you a loan; they can also lend you advice and guidance about the loan process.
Create a strong business plan. – The loan is based on your business, so without a strong business plan, how can you show your banker your planned trajectory for growth? Make sure your business plan is well thought out; it is essentially a roadmap to your success.
Put some skin in the game. – There’s a lot of risk involved when lending money. If you want to get approved for your loan, you need to be willing to invest at least a small portion of your net income.
Be honest. – Borrowers should always be open and honest about their current financial situation. Keep your banker in the know at all times. They are there to help you.
Contact one of our Countybank relationship managers and see what we can do for your small business today!
Note: “Fresh Ideas” are published each week by Countybank and its family of financial service companies. With financial centers in Greenville and Greenwood, Countybank has a team of highly engaged professionals ready to bring a full scope of financial solutions designed to help families and business owners reach their goals.