Small businesses in Florida play an important role in our great nation. Courage and dedication to an idea, accompanied by great passion and the willingness to take chances are all traits which are commonly associated with private business owners. Understanding that need for the entrepreneurial spirit in our economy, the “mom and pop” shop values upon which the principles of free enterprise are established is creating a new trend for start up businesses of all types. Regardless of the type of product or service there is one thing in common which all small businesses need – money. When it comes to loans for small business there are multiple sources and plenty of strategies and ideas to secure them.
Plugging in the Correct Financial Destination:
Many small business owners have established relationships with individual banks and other large institutions and may even have open credit lines at attractive rates which are unused. If those sources are readily available and the terms are the best, after doing a little research then that it one less issue on the business owner’s plate, which is normally running over with responsibilities.
Most business owners, however, may have already exhausted their open lines of credit and easy sources for cash and need to seek funding from a new source. The economy certainly has its way of drawing from business reserves during down times and the climate lately has been filled with a few extra storms, resulting in many small business finding themselves a bit on the cash depleted side of things. Owners may require loans for small business day to day operating expenses or even payroll needs. Other businesses may need extra funding in order to expand inventories or remodel their location due to rapid growth. A sound strategy may involve calculating exactly how much to borrow and establishing that goal as the “destination” which can be planned for and mapped out accordingly. Setting the course may include:
Arrive on a set amount of money which needs to be borrowed.(This amount should reflect the ultimate goal, realizing all loans may not be provided for the full amount)
Create a plan which determines how much can comfortably be allocated to pay back the loan.(The terms as far as business monies set aside by budgeting monthly, quarterly or annually to provide for timely repayment of the loan)
Formulate a strategy of either borrowing with a cushion or bare minimum. (Often for expansion needs extra “padding” is required for unpredictable costs of construction or inventory minimum order quantities)
Items Which Will Be Needed for the Journey:
If the loan is represented as the ultimate destination then there are going to be several items which will be required in order to cover the distance with the least amount of difficulties. The theory of bringing “just enough” of what is needed can be completely discarded when it comes to providing information for a loan. Depending on the source and the length of the “red tape” which is required to ultimately arrive safely on the amount of loan which is desired, an arsenal of information needs to be prepared. It is better to provide as much professionally prepared and accurate information as possible. A few examples of information which will be needed include:
Personal Background Information. (Including a resume is a plus)
Business Licensing and corporate papers. (Better to have too much than too little)
Credit reports for both personal and business.
Lease agreements signed by the business.
One year at least of personal and business bank statements.
At least three years of tax returns, both personal and business.
Financial statements of the business as well as personal. (Including a list of collateral if the loan being sought may require it)
Business plan including future projections for a minimum of a year, longer is better. (Best case scenario projections – providing enough lipstick to doubly coat the mouth of a tiny pig is not necessarily frowned upon)
Big Expectations May Come In Smaller Packages:
For some it may be the first time they have ever faced such challenges, but for veteran business owners it is just another quest for digging up more operating capital. Seeking loans for small businesses may actually have the best answer right in front of those who are doing the hunting. Since the crash of the big banks, whom we used to think were friendly to small and medium size businesses, the relationship has without question become a “strained” one. The most important word for locating like-minded quality service for loans may well be to follow the concepts and values of the business itself. Business is business but “small” is what provides that extra measure of ensuring personal and customized service. Small business owners know it, that is why they go above and beyond each day to serve their clients. Why not implement that same concept and go “small” when it comes to personalizing financial needs for the business? Many knowledgeable entrepreneurs are finding their own professional source when it comes to small business. With banking relationships business owners are limited to options which are available by only one bank. Seeking new banking relationships may take years to establish a level of reproving creditworthiness in order to be rewarded with best rates and terms. The difference in services when choosing to hire a business loan professional as opposed to the “do it yourself” concept of loan hunting include:
Representation in the form of a personal financial spokesman who has many established sources for business loans.
Advice and help gathering and properly formatting information necessary to present to lending institutions in the preferred methods they require.
Hiring an expert as opposed to spending time with back and forth requests for more information from banks and lending institutions.
Not being limited to accepting traditional “prepackaged” loan products.
Being able to delegate someone to handle business funding while concentrating on running the business without interruption.
Generalization in a Specialized World:
Today there are very few areas in which businesses are moving toward more generalized products and services. Society is a lightning quick ever changing white hot fireball of new technology which literally makes some business models obsolete overnight. It is not only money that does not sleep, invention is never afforded the luxury of rest as well. In keeping with the trend finding the right source for loans for small business seems to be moving rapidly away from traditional banking options. With time constraints and emphasis on service the best choice is always the one which fits “snuggly and comfortably” with the least amount of wrinkles.
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