Filed under: Tip of the Day
From “Blueprint” in Counselor’s August 2011 issue …
Once a financial checkup is conducted, business owners often realize that they need more cash on hand to adequately run and finance their growing operation. While credit from banks is still tight, here are three ways to get lenders on your side:
- Get organized. Know how much you want to borrow, what you can pledge as collateral and how you will use the loan, says Mike Griffin, business services manager for United Federal Credit Union. “The institution is going to request a lot of information from you, so have your financial records in order,” he says. “When applicable, have projections – this will demonstrate to the loan officer that you are prepared.”
- Do your research. It is important to find a financial institution that is able and willing to lend money, says Griffin. Then, the key is to find a loan officer who is willing to work with you. “A good loan officer will be of assistance long after you close the loan.”
- Move your “business relationship” to the lender. Show potential lenders that you’re willing to expand the financial partnership past the terms of the loan. “Tell the loan officer you are willing to move your checking accounts,” says Griffin. “Having statements is a big plus. Ask them about other services and products. Business relationships for a financial institution are more important than ever.”
For more information, check out the Blueprint section of this month’s Counselor magazine.