.
Be Careful
Some available resources are readily available, but can be expensive. Always ask for all costs relating to the loan, costs, including interest, fees, closing costs, legal expenses, pre-payment penalties and third party expenses..
- Asset Based Lenders
- Pay Day Lenders,
- Factoring Companies,
- and long term use of credit cards
- Know your Breakeven (How many sales per month to cover your operating expenses)
- Do you meet lenders 3 Cs requirement? – Credit, Collateral, Cash Flow
- Do you understand what an SBA guarantee can do for you?
- Match your funding requests with appropriate time lines
- Create a path from yesterday to tomorrow. Your history is as important as your future (cash flow projections)
- Know your industry and your market
- When you are ready, prepare an executive summary as a sales tool that highlights the strengths of your business.
- Raising money is a selling job.
- Be prepared to convince others of your ability to repay any obligations.
- Have an adequate interest reserve in your operating budget.
- Plan for all pre opening costs plus working capital requirements.
- Ensure having adequate working capital until break-even point.
- Avoid excessive short-term debt.
