Bank Financing Challenges
Are you hoping to grow your business or looking for ways to finance your startup? One of the most challenging tasks for new business owners is figuring out how to turn their ideas into a lucrative business.
While many new businesses look for investors or borrow money from family and friends, a bank loan is still a great financing option. The secret, of course, is to show the bank that your business is a good investment. Here are some tips to overcoming the challenges that come with securing bank financing for your business.
Create a Stellar Business Plan
Think of your business plan as a road map to success. A good business plan will define your goals and explain how exactly to meet them. It will also give you a solid overview of your business that will can you stay on track.
From a financial perspective, a business plan will give lenders a good idea of your goals and how you intend to turn a profit. Make sure your business plan states measurable objectives, outlines strategies for meeting for financial growth, and explains why your business is a secure investment.
Get Your Paperwork in Order
Aside from your business plan, a good loan proposal will include recent tax returns and bank statements, proof of your personal and business insurance, letters of incorporation, any registrations or trademarks you hold, and relevant business licenses.
Don’t Shy Away from Financial Discussions
Your lender will want to know about your current expenses and revenue streams, so do your research and be prepared to discuss finances when asked. You should know what your ongoing expenses, like rent, utilities, capital investments, payroll, and supplies are. You should also be prepared to discuss your personal contributions to the business and exactly how you will be spending the requested money.
Consider a CPA or Tax Consultant to Help You Prepare
A tax professional who specializes in bank financing will have the skills and expertise to help you secure your bank loan. A CPA will know exactly what the bank is looking for, and can work with to turn piles of paperwork into a winning loan proposal.
At Your Tax Advisor, LLC, Lalit Abichandani and our dedicated team are committed to helping you secure the financing you need to grow your business. We can prepare loan proposals and substantiate your financial position so that you can focus the important aspects of running your business. Call our NYC office today to schedule a consultation.