Our local SCORE chapter here in Southwest Florida recognized that there was a lot of confusion between the commercial borrower and the banks. We formed a bank loan committee in our chapter and sent each committee member to a bank to have them show us their requirements for obtaining a commercial bank loan. The banks’ responses were overwhelmingly positive and that started close relationships that continue today. In this post, I’ll share with you what we have learned and tips you can use to secure a loan for your small business.
Getting a small business loan from a bank can be difficult and time consuming. Each bank has its own criteria for loan approvals and can change its criteria depending on both internal and external events. The best chance you have for getting approved is to present the bank with the information they need, how they need it, and in a professional and concise but complete manner. To that end, here are the major criteria used by most banks in approving loans.
For this article I was hoping to come up with a neat chart with small business marketing benchmarks by industry. Unfortunately those figures do not seem readily (or publicly) available. But I have seen several polls by different companies that all point to the same general “rules of thumb” for marketing budgets. The below levels of dedicated time and money are typical of businesses that are growing and want to keep growing.
It might seem like you have to come up with a game-changing concept like Facebook or the iPod to have a successful startup, but the reality is far different. A recent Nielsen study found that new products, far from having an advantage in the marketplace, are often at a disadvantage. If you’ve got a world-changing idea, don’t give up—just make sure your product launch is supported by plenty of sales outlets where customers can “stumble across” your product, strong marketing and advertising support to make them aware of it, and social media and PR efforts to spread the word.
Business ideas don’t go anywhere without an entrepreneur driving them. With very few exceptions, people with bright ideas never make any revenues, develop any products or became captains of any industries. The reason is they weren’t entrepreneurs. They were just people with a solid idea. It’s not the idea, it’s the execution of the concept that means almost everything.
There are two broad categories of funding you can use to start up your company. These categories are not distinguished by who you’re borrowing from but by the requirements, limitations and types of returns that regulate the type of investment. It boils down to what you’re giving away to receive the money.
There are a lot of sources out there that will tell you how to start a franchise and eventually how to run one. So, how do you start your search? Too much information almost makes decision-making worse. Here we’ve outlined some resources for those looking to open a new franchise.
There’s some good news for small business owners who are looking for financing to expand their businesses: Banks of all sizes are approving more small business loans, according to the latest Biz2Credit Small Business Lending Index. Small bank approval rates for small business loan requests increased to 50.3 percent in February, up from 49.9 percent in January and 47.6 percent in February 2012. Clearly, though, the big news is with big banks.
Whether you’re interested in starting a new business or your business has been around for years, creating an online presence and building a website is critical to your success. The idea of getting online might sound daunting, but the process is easy and starts with one thing: a domain name.
Determining your startup costs can be complex. There are many variables to think about and in some cases, the best you can do is to make educated guesses. But the more accurate you can be in estimating your costs, the more likely you are to fund your startup appropriately, and therefore be poised for success.