Five Small Business Loan Tips
As most business owners will come to know,
obtaining a small business loan can be a trying ordeal. Learn what you need to know
about getting a small business loan for your
business.
An important source of funding for your business in the future can be the bank. Relationship banking has been the cornerstone of
small business financing. A good relationship
between the business owners and bankers
allows for the free exchange of knowledge
and the ability to meet the needs of business.
A banker informed of your business can not
only provide you with a small business loan
but also offer practical advice on financial
matters.
Banking Relations and Your Small Business
Loan
Setting up a relationship with your banker begins with following five tips:
1. Set up a bank account at a bank that
deals with your size and type of small
business.
2. Manage the account effectively and avoid
overdraws, bounced checks, and low balances.
3. Borrow a short-term loan and pay quickly
to establish your business credit.
4. Keep your bank informed of upcoming issues, missed projections, and missed
payments.
5. Get to know your banker and help them to
understand your business.
Relationships can be beneficial when it
comes time to apply for a small business loan
or large credit line. Remember, banks are in
business and all companies need to assess
risk and make profits.
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