Position Your Company To Be First In Line for a Bank Loan

small business bank loan planning

Financial planning clock management is vital to small business funding and strategy.


January can be a lost month for small businesses seeking capital - they are not ready to go to market

Here’s why:

  • Banks require complete year end financials in order to determine their interest in providing both working capital and term loans.
  • Financial managers know that the terms and rates based on historic profits are more favorable than funding requests based on projections.
  • Funding resources are ready to make investments for the upcoming year, but the prospective borrowers are not prepared to schedule appointments because they have not finalized their year- end financials.
  • Company management must first reconcile the financial records, meet with their accountants and make some strategic decisions before they can set up an appointment with a funding resource.

Why did they wait until January to start this process?

Hopefully it has been a good year for the business and perhaps distributions can be made to partners and shareholders.

Adjustments must be made for:

  • Depreciation
  • Reserves set aside for taxes
  • And most importantly, consideration given to cash requirements for inventory and business expansion. 

To secure the best guidance and advice most small business owners seek counsel from a third party accountant.  

Due to appointment availability and even overbooking it inevitably creates a log jam waiting for appointments.  Their overbooked, overworked financial advisers in order to close out the year and prepare their tax returns.

No forward strategy without financials

I have been a financial advisor to companies, both large and small for many years.  January has always been a very slow month for new loan originations for small businesses. 

Corporate decisions cannot be made and certainly cannot be supported until year-end financials have been reconciled and evaluated.

If owners do not know what you have done financially for the past year, they cannot project what their strategy will be for the upcoming year. 

Next- What to do:


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 the executive director of Primed2Grow, a Miami based consultantcy. Most recently Maj was 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.