Small Business Financing: 3 Must Haves for Success

#1 Business Banker 

A business banker is your advocate and having an advocate within the bank is critical and will help streamline each finance process for you but will always champion inside the bank.  A good business banker will evolve into a trusted advisor and with their exposure to numerous businesses, they can be a great catalyst for ideas and future financial needs.  A dedicated business banker will always provide a commitment to you and your business.

#2 Business Plan

A sound business plan is your guide to success and an important tool for financing. A business plan will guide you to obtain everything that’s on your mind on paper.  It allows you to list all of your goals and plans for achieving success.  A business plan will help sell your business since it explains everything about your company.  It will help develop your niche and goals.  Most of all a complete set of financial statements is needed.  To be taken seriously, you will need a complete business plan.

#3 Financials 

Each and every loan has specific forms you will need to complete and documents needed to submit, but much of the same information is required.

  • Personal Financial Statement (PFS) is the bank’s primary tool to analyze the asset, liabilities and contingent liabilities of individuals.
  • Income Tax Returns are required from each applicant to submit for the previous 3 years business and personal.
  • Financial Statements are required by owners with more than a 20 percent stake in the business.   Also needed is a projected financial statements either as part of, or separate from, your business plan.
  • Bank Statements are requested to review the personal and business account.

One Response to “ Small Business Financing: 3 Must Haves for Success ”

  1. June 25, 2013

    This is a very helpful post. Thanks Carol! At the risk of appearing a bit self-serving, I would add that it’s important to have a marketing plan. I’m sure that’s a part of the complete business plan…but these days the marketing plan is absolutely crucial.

Leave a Reply

Your email address will not be published.