BUY BC BUSINESSES Business Buyer's Guide Vancouver Island Coastal Region Spring 2015 | Page 7

Get An Opinion; Even a Second Opinion. Whether buying or selling a business, be confident with the value. Venture Connect provides that confidence with small business valuations starting at just $350. E. [email protected] TF. 1.855.421.0082 10 Tips To Help You Negotiate a Business Loan in 2015 1. Long before you need money, even if you believe you will never need a loan, it’s a good idea to build a solid relationship with your bank, or other potential sources of funding. Think about it would you be more likely to lend money to someone you know, or a complete stranger? 2. First things first, write a business plan or update your current one. Lenders like to know you have a plan. Crazy eh? 3. Pull together your financials; the key figures lenders want to see include an income statement, balance sheet and most importantly a cash flow spreadsheet. They’re not stupid, they want proof you will be able to pay them back! 4. Now you have your financial statements ready, make sure you understand them. These are your firm’s management accounts - you need to be in control. 5. Think long and hard about why you want the money and what you will use it for. Lenders will ask, so be prepared. Bear in mind, it’s a lot easier to get money for equipment and other capital assets than for staff, or operating costs, for instance. 6. Know exactly how much you need and what it will be spent on. Lenders want to see the money is going to be spent wisely on things that will improve your bottom line. 7. Consider - do you need long-term or short-term cash? Are you looking for a line-of-credit, or a loan which you will pay back at a set amount every month over several years? 8. Check your personal credit rating - especially if you are a proprietorship. If it’s not so good, things could get sticky when you meet a prospective lender. Basically get your own financial house in order, not just that of your business. 9. Ensure you have some skin (as in money or assets) in the game. No lender wants to take all the risk. Do you have any assets you could use as collateral? For instance, do you own a boat, a Harley, a classic car? Could you use these by Mike Wicks to make the lender feel more secure? President, Blue Beetle Creative Media 10. Finally, put yourself in your lender’s shoes. They have a responsibility to their stakeholders, and of course bosses, to lend responsibly. Ask yourself, would you be prepared to risk betting your house on your business being able to pay the loan back? If it was all your risk, would you lend the money to your business? Be honest! Www.bbcreativemedia.com 7