9 Steps to Access Capital for Your Growing Small Business

small business funding

These nine steps will enhance the level of success in securing small business financing

 

Preparation is job one before seeking financing in all it's various forms. These will serve as a guide to help achive a financing goal. 

Step 1:

Check your credit score. Address the issues. Use a 680 credit score as your goal

Major credit issues that adversely affect your score are bankruptcies, foreclosures, short sales, and loan modifications

How your credit score is impacted                 

  • Past Delinquencies --35%                  
  • Debt Ratio - 30%                   
  • Average Age of File -15%
  • Mix of Credit Types - 10%                  
  • Inquiries  - 10%

Step 2:

Improve your elevator pitch

A quick and concise description of what your business uniquely creates and delivers to it clients

Step 3:

Establish a relationship with a business banker before you need to access capital

  • Attend networking events, interview lenders.
  • Open a business account

Step 4:

Prepare a strategic plan that includes an action plan (A traditional business plan is not required)

Step 5:

Create a team that meets periodically to review your progress and problems.

The team would include:

  • Owners and senior management
  • Your attorney
  • Your accountant
  • Your marketing specialist
  • A mentor or a coach and possibly an advisory board

Step 6:

Prepare financial information including:

  • Profit and Loss Statement and Balance sheet -  Update Quarterly.
  • Accounts Receivable and Accounts Payable -  Update Monthly
  • A current schedule of  existing debt - with payments and interest rates Update Monthly
  • A  current Personal Financial Statement for all owners of company with an interest of 20% or greater

Next- Steps 7, 8 and 9

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About the author

Marjorie Weber

Marjorie Weber has been educating entrepreneurs and guiding them in their search for capital for the past 16 years: combining business training programs with one-on-one mentoring. Marj is currently a financial advisor for Florida SBDC at FIU. She was Chair of SCORE Miami Dade from 2010 to 2014. She also serves as an advisor to the Goldman Sachs 10,000 Small Business Program and the SBA Emerging Leaders Program and provides training for Veterans seeking an entrepreneurial path upon retirement from the service. She has  facilitated workshops under the auspices of Miami Bayside Foundation, Little Haiti Cultural Center and .local banks. She commenced her career as a real estate investment banker in New York and Miami..She uses these long term relationships to assist her clients in accessing capital. She knows both the process and the people and has assisted in providing financing for hundreds of businesses in Miami Dade.