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%
- Attend networking events, interview lenders.
- Open a business account
- Owners and senior management
- Your attorney
- Your accountant
- Your marketing specialist
- A mentor or a coach and possibly an advisory board
- 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