Three small business tips that every small business should know . . . but most don’t
HOW TO THINK LIKE A BANKER AND GET THE LOAN
Jim Blasingame is a small business owner’s best advocate. Jim and I caught up last week and discussed these are the three small business tips that every business owner should know, but most don’t.
APPLY FOR A LOAN WHEN YOU DON’T NEED IT
That’s not a typo. Apply for a loan when your small business is flush with cash, not when you can’t pay your bills.
No banker will ever tell you this, but as a former Vice President for Citicorp, it’s clear a bank wants to loan you money when you look like a good credit risk. When your business is flush with cash, that’s the way they’ll see it.
BANKS ARE IN BUSINESS TO MAKE MONEY, NOT TAKE ON RISK.BANKS WANT TO KNOW HOW AND WHEN YOU’LL PAY THE LOAN BACK. THEY ALSO WANT TO KNOW WHAT’S THE LIKELIHOOD YOU’LL DEFAULT. IF YOU CAN REALLY PROVE YOU CAN SERVICE THE DEBT AND PAY IT BACK IN RECORD TIME, YOU’LL HAVE AN EASIER TIME GETTING THE LOAN.
MAKE YOUR BANK YOUR STRATEGIC PARTNER
Don’t just call your banker when you need something. Include them in your inner circle the way you’d reach out to media every time something wonderful happens.
Did you close a big deal? Let your banker know.
Were you invited to give a talk at a conference in your industry? Invite your banker to come.
Are you giving a webinar? Invite your banker and his/her team to listen in.
Did your article just get published in a major newspaper or website? Make sure your banker is on your distribution list including your newsletter list if you have one.
Keep these tips in mind and think like a banker and get that loan!
Speaking of newsletters, stay in touch by signing up on the right for my 20 minute cheat sheet and my weekly “Dawn’s One Thing” – one tip that will help you grow profits and cash. It’s free. No spam. Just do it!