A bank will loan you money based on the idea of how profitable or successful your proposed business idea will be in the form of a business loan.
Obviously, the bank is just the line of credit, while you retain full ownership over the concept of the business as well as its execution. Pay the loan off, the bank is completely out of the picture. This is where having a really solid business plan is essential. Also, check out our tips on making more money.
You want the bank to believe in your idea, you want to be professional, you want to know for yourself the good and the bad. If the bank doesn’t believe in you, you aren’t getting the loan.
In addition, you need to have established good credit over the years. Review your bank statement mailings. It is wise to check your credit scores before you apply for a business loan. f you haven’t already done this, then establishing or fixing credit would be the most obvious starting point. There are dozens of ways to establish good credit, the first and most obvious being to pay your bills on time. But also, you want to make sure you keep open credit (don’t close cards you have paid off). Carrying a 15% balance on revolving accounts and credit cards isn’t the worst idea, either, rather than just paying it all off and letting it sit there untouched.
Why would a business loan be good for your company? Well, bank loans mean you forgo having to be cash heavy in the initial stages of your business. They allow you to hire staff, build a product and pay leases without having to dig into your own pockets. As an incentive, your interest paid on the loan will be tax deductible, the details of your repayment schedule will be in your business loan offer.
Is a business loan right for you? Well, how good is your idea? How good is your credit? If you can establish passing grades on both of those points, you are off to a good start. The business plan is essential here because any good business plan should include financial estimates, for example, when you should start showing a profit (thereby predicting when you can pay the loan back).
Business loans aren’t for every business and they aren’t the only way to succeed. But they are a great way for a business to get started and are always worth looking into. And remember, when you get that business up and going, turn to Check Issuing for your third party check disbursement solution!
Why Third Party Check Disbursement Is For Your Company
Companies are a complex thing. In order for a company to truly work at the highest, most efficient level possible, it must host a number of different aspects and functions. All of these aspects and functions must be run by manpower. I know, computers and automation seem to be taking over, but that’s pretty far from the truth. People run the computers and automation. At the end of the day, when it comes to management, that’s a human job and that’s not changing for a while.
For companies, this can create a sense of bloat. You can almost feel overwhelmed as if you have to have someone managing something that someone else needs to manage. It can lead you down the dark road of micromanagement. Some of this is just plain necessary though, but what if all of it wasn’t?
Your product or your service is your bread and butter. When you innovate, you make more money. When you make clients happy, you make more money. So why wouldn’t you focus on only those aspects of the business?
The truth is, it is easier said than done for most, but that doesn’t have to be the case. Did you know that check disbursement is listed as one of the top 3 stressors by CEOs? Yep, you might not think so, but check disbursement is serious business. Check fraud cost US companies billions of dollars a year. Preventing check fraud is a huge stressor and mountain to climb.
At Check Issuing, we prevent check fraud and more. Our letter printing and mailing services envelopes are so full proof airport security couldn’t see through them (actually I am not sure on that but you get the idea!). We also make your checks appear more professional by placing your company brand on them. And we can disseminate company information out to customers and clients in the form of memos. When you are with Check Issuing, you can do this and more at the admin level! And we have amazing client support, the Check Issuing team are some of the coolest, brightest, nice and best looking around (that last one is for me).
So what are you waiting for? Contact one of our super nice client service reps today!
The Reason Your Bank Loan Application Was Denied
Like many small businesses, you might rely on credit and bank loans to infuse capital into your amazing concept. Unless you have a trust fund or your product / services concept has little overhead, you may be in a position to need credit and loans. But often times, we are denied credit which hinders our ability to be progressive.
You don’t show enough income.
I know, you are just starting out, but sometimes the bank wants the egg to come before the chicken. And that’s not always easy. If you are showing too low of an income level personally, this can create problems for you when it comes to getting a bank approval. They want to know that you have some sort of cash flow, otherwise, you create a liability for them. I know, chicken or the egg, right?
Your business plan sucks.
When you apply for a business loan, make sure your business plan is up to snuff. Don’t just throw it together as if you were about to show your grandmother. It should be professional and succinct.
There are tons of online resources that can help you put together a professional business plan which includes current financing and financial projections. You can also pay a small fee to allow a professional to help you out in this respect. Don’t show up with a shabby business plan and crap on your chances at starting something really great!
Underwriting philosophy varies per lender.
Sometimes you just get the short end of the stick with no real explanation to be offered. Various banks and lenders have their own internal triggers and reasonings for not helping us out with a loan or credit. Knowing that triggers for declining us may vary should help ease our minds some and help us realize that that particular lender may not have been the best match for our goals.
Your credit score ain’t so hot.
Do you have a few credit cards that are maxed out? Have you paid late on a revolving store card? Is your student loan really angry at you? These things add up when it comes to your credit score. If your credit score sucks, you should immediately look for ways to resolve this. Free-spending space on maxed out cards while still carrying a low balance. Call your student loan and gravel for ways to stop them from reporting to the credit bureaus. Stop buying shoes at Macy’s. Do whatever it takes to work this stuff out!
If you can’t get a loan, remember, you can also go out and try to find investors or turn to crowdfund!
Resources
Banks that offer business loans
Small business loans for women
Check Issuing, How Third Party Check Disbursement Is Your Solution
Companies run. Yep, they run. Ok, this is basically a statement that no one says, ever. Of course they run, but they don’t just “run,” per se. They have an owner or operator who has foresight and ambition and intuition and dedication. They have staff like programmers and customer / client services and sales people and marketing gurus and accounting departments. They have leases and car services and trips to conventions. They have electric bills and water bills and charitable donations.
They don’t just “run,” they “RUN.” And that’s an important distinction. Knowing that a company, in order to run, requires 1000’s upon 1000’s of hours of man power offers us some insight into ways to make companies run a little, well, better.
More efficient.
Less bulky.
More profitable.
All the things we love to hear about our company, right?
Well, that’s how Check Issuing can help. We can send out your checks, cut down on manpower, eliminate check fraud, secure a portion of your accounting and help your company weigh a lot less. Yep, Check Issuing means your company, on a six pack ab diet. Because we know third party check disbursement and check fraud, and because you know your company’s product, we make a team that’s super efficient and more profitable.
You dig?
So get with one of our Check Issuing agents today. We have the best customer service on planet Internet and we love meeting new people and hearing all about their business! We have a great many happy clients that love our bill printing and mailing services. Most of our business is repeat clients. Wanna find out why?
