At a time when most bankers say that they have plenty of money to lend, plenty of small businesses seem to be stuck in the mud or even shut out of the borrowing business. It’s time to review borrowing basics.
Banking & Financing
You discover a great growth opportunity for your business. You find a group of investors to fund it, but they want to see your cards–your corporate records and documents—before they place their bets. Can you respond before they lose interest and fold?
What kind of impression do your financial statements convey to your financing sources? Beyond the actual financial results, a disorganized chart of accounts may be providing unintended insights into your management savvy and level of sophistication, causing your banks and investors to discount your numbers. It may be time to declutter.
It’s a new ball game in the world of small business bank lending. Like their dot-com predecessors, bankers today have found out that it’s not the size of their loan portfolio that makes the difference. It’s not about how much business a loan officer can bring into the bank. It’s not even about how profitable that business might be in terms of add-on fees, swaps, or contingent financing premiums. Instead, stimulated by the prospect of federal and state oversight, the banks are retooling with a model right out of the mid-’80s. They’re going back to Banking Basics 101.
"Howe's Bayou"