Do you know if your business is bankable?
There is plenty of talk about access to capital. Banks generally received a lot of flak for their prejudicial practices towards small businesses, especially minority businesses. Some are even making amends to their lending policies. Others offer financial literacy classes, reach out to customers to establish relationships, or sponsor initiatives supporting small business growth. Yet, many small businesses are still not able to access capital. Could it be that they are not bankable?
Not every business that needs financial support is prepared to take on liabilities. “Being bankable” or ready to conduct business with a bank requires a business to have a clear business plan supported by financial information supporting the ability to pay off loans or lines of credit. Financial statements must be current, showing financial stability and growth over at least 18 months. Signed contracts, healthy accounts receivable, business assets, and personal credit are some things the banker will review. Have great plans for your business that you know are going to work? Make sure you have a solid marketing plan. Finally, don’t wait until you need capital to seek capital.
Do you have questions about being bankable? Let us know in the comments.
Is Your Business Bankable?
