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