Preparing Your Business for the Funding Search (Getting a Business Loan)

The Funding Search

Without the proper credit profile, it can be extremely difficult to find someone willing to give your business a loan or lease. Before looking for a business loan or financing, make sure you are prepared to present an offer to a lender. You must understand what it takes to obtain the loan your business deserves.

Learn how to:
   -Prepare you and your business
   -Develop a plan
   -Put together a written plan
   -Package the request
   -Determine the type of funding needed
   -Find the right lender

Prepare You and Your Business

   -Obtain a favorable business credit score
   -Establish or maintain a favorable personal credit score (FICO or Beacon)
   -Acquire business trade references
   -Open a true business bank account
   -Do the research on what types of loans and leases are needed

Develop a Plan

   -Have someone with good personal credit to sign for the loan or lease
   -Determine what business structure to use before applying for the loan or lease
   -Establish why you need the money
   -Decide how much you need
   -Finalize how you will pay it back

Put Together a Written Plan

   -Create a written executive summary for the right loan or lease for your business
   -Formulate a business plan
   -Prepare a marketing plan
   -Have two years financial statements and tax returns for the business and individual
    (if available)

Almost any lender will want to see these things before looking at an application. Blue Financial offers an array of business planning services and products that focus on developing a high quality business plan for your company, regardless of your financial needs. If you are ready to develop a full-length, investor-ready business plan, visit our business plan website.

Benefits of Leasing

Don't just focus on a business loan. In many instances a business lease may be more advantageous. Some benefits include:

   -No down payment
   -Offers the use of an asset, without the large down payment
   -Typically tax deductible
   -Preserve bank lines and working capital
   -Replace outdated equipment with up to 100% financing installation costs
   -Improve your cash flow and gain more production
   -Establish new lines of credit while generating a return on available cash and improving
     balance sheet ratios
   -Streamline bookkeeping procedures
   -Expands your budget capabilities while avoiding costly financing delays
   -Leasing enables you to finance new machinery and equipment, or to turn presently
    owned equipment into cash

Packaging the Request

Before submitting any loan or lease request to a lender, you must have a package developed. The package must contain exactly what the lender is looking for to establish compliance. Each lender is different. Therefore, we recommend using a professional who knows what each lender requires for their package and which lender meets your qualifications.

   -Lenders want the loan or lease request presented in a specific manner
   -Use a professional loan packager who has several lenders to shop your request
   -The packager will provide the lender what they want to see and increase your chances
     of approval
   -The packager will also save you time and money