Jean publishes a blog called the Enterprise Corner. It features articles on entrepreneurship, local industry trends, manufacturing news and periodic ‘toolbox’ articles showcasing assistance, incentives and other resources for local businesses.
As our economy continues to bounce out of the recession many companies are faring better and poised to expand. Some firms can support their growth with profits alone but most companies need to access outside financing to build their business. It is very challenging to get a loan as a start-up business but as firms get past their third year and establish solid accounts and records there are more financing options available.
Companies need to carefully evaluate their funding needs and match them with appropriate financing option. For example, if you need to buy equipment it is better to use a longer term loan with a lower interest rate and a payment plan. On the other hand if you want to purchase inventory a shorter term line of credit is a better fit.
If you want to secure financing we suggest you start by pulling your business and personal financial information together. Most lenders will need to see your personal financial statements, tax returns, business financial statements, copies of pertinent legal agreements, lists of accounts receivable and payable, and get a clear sense of what will be funded with loan proceeds.
Once you have pulled some of these records together it is worthwhile to talk with your current bank or credit union about business financing. You have a relationship with people at your local lending institution and that should be an advantage when you want to discuss financing. If your local lender is not interested or able to help you then we suggest that you carefully shop around for prospective lenders.
As time goes by Crowdfunding may be a larger option to support businesses. Keeping abreast of the websites that aggregate investors and project funding could represent good options for certain types of businesses.
Our office has put together a ton of information, check lists and helpful advice on our website regarding business financing. Please feel free to contact me at email@example.com or 509-575-1140 if we can help your with financing questions. We also suggest contacting the Small Business Development Center (SBDC) advisor Linda Johnson for help. She can evaluate your financing options and identify the records and information you need to assemble to support loan applications. Linda offers valuable free (and confidential) advice for established companies of all shapes and sizes.
Our office’s mission is to help businesses expand or sustain operations in Yakima County. In addition to financing, we offer tailored assistance on a variety of topics: