The Primary Cause Of Business Financing Frustration

  Finding proper business financing is not easy at the best of
times for most small and medium sized business owners and
managers 
 
  There are a number of reasons that
collectively explain why the business financing market can be so
difficult to understand and navigate
 
  But probably
the single biggest reason is the lack of useful information
about how the business financing market actually works
 
  Business financing information and education sources
predominantly come in two forms: 1) Text books; 2) Major bank
advertising
 
  If you’ve ever read through a
educational finance text book or taken a business financing
course, you already know how difficult it can be to apply the
theories, principles, and strategies to a small or medium sized
business
 
  Our formal education system provides
limited information as to how the market place works, how to
plan for financing requirements, how to manage periods of
growth, decline, transition, start up, etc 
 
  Sure
academic books and courses can go through all these areas in
great detail, but is the information practical, real world,
something you can relate to and apply yourself as a manager or
owner of a small or medium sized business?
 
  In most
cases, the answer is a resounding NO 
 
  Most finance
text books speak to big business financing dynamics that are not
easily transferable to small and medium sized business
scenarios
  
  Outside of the formal education system,
the next great source of business financing information is the
information provided by the major banks, which they tend to make
available to you by the boat load through their broad based
marketing campaigns
 
  Unfortunately, the information
by itself seldom helps you determine if a particular institution
would be able to provide you with financing, or what would be
required to qualify for a loan
 
  The good news is that
business financing sources continue to grow in numbers as more
and more lenders carve out a particular piece of the market to
service
 
  In order to take advantage of these
alternatives, you need to have a solid approach in place when
seeking business financing
 
  Here’s a short list of
things to consider
 
 
  >>> Develop a solid,
ongoing, understanding of both your personal and business
assets, income, and cash flow
 
  Regardless of the
business financing model, these elements will always come into
play to some degree
 
  Being able to demonstrate a
solid understanding of your business financials is also an
indication of your ability to manage the underlying
business
 
 >>> Monitor and manage your personal and
business credit
 
 Small and medium sized business
financing is focused on both personal and business credit
histories
 
 Regular reviews of both personal and
business credit reports from the major credit reporting agencies
are important to avoid errors and credit practices that can
severely damage your borrowing power
 
 >>> Develop your
marketing position
 
 Yes, seeking business financing is
a marketing exercise
 
 When applying for business
financing, you’re marketing your business to lending sources and
they in turn are marketing their business financing programs to
you
 
 Think of the lender as a customer to better
understand what they’re looking for Then, develop a business
proposal that addresses all their potential needs and concerns
 
 
 >>> Research Lending Sources
 
 There are
lots of business financing sources But there is also lots of
variation in the types of business applications each one is
prepared to consider
 
 Broad based lenders rely on
credit history and net worth  As you get more specific in terms
of financing application and industry, lender programs become
more narrow and can be harder to locate
 
 You need to
consider things like industry, sector, and geography when
looking for business financing sources
 
 Financing
consultants and business loan brokers can be an excellent source
of information to aid you in this process
 
 >>> Qualify
The Lender
 
 Before you make a formal application, find
out if the lender has the programs and lending track record to
meet your specific needs
 
 Too often, the lender is
doing all the qualifying
 
 
 >>> Compare your
options
 
 Depending on the scenario, there can be several
financing strategies that could work for your
business
 
 Make sure you take the time to compare before
making a decision  The extra time spent could save you
considerable time and money in the long run
 
 >>> Start
Today
 
 Regardless of what your business financing needs
are right now, you should regularly invest time staying on top
of your business financials, monitoring your credit, and
researching financing sources that fit your industry and
potential future requirements
 
 When the time comes to
acquire capital, your proactive efforts can make all the
difference in getting the capital you need with terms and timing
that are acceptable to your business
 
Brent Finlay makes
it easy to understanding business financing Learn how to locate
and secure proper financing for your business To receive your
free 6 part mini-course visit the business financing website 

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