3 Steps To Becoming “Bankable”
With more than 25 years experience on the lending side of banking, we know what banks and lenders are looking for. There are three critical steps you must take to make your business “bankable” and find the right financing.
1) Develop A “Bankable” Business Plan
The financial section of your business plan is just as important as the products and services section. This is one of the key components financial institutions will use in making lending decisions. The financial figures need to show the expected monthly income and outgoings, and should predict the profit you believe you will achieve, and how much finance you will need. You must convince the lender that you can repay the loan.
Whether or not a bank requires a written business plan (it depends on the loan amount and type of loan), a business plan will help you formulate your business ideas and it will be useful when talking with a lender about your business. Additionally, a business plan can tell your sales personnel, suppliers and others about your operations and goals. It can also help you identify your strengths and weaknesses, and areas where you may need professional help.
2) Manage Cash Flow
Manage Cash Flow and Anticipate the Future. Maximize cash in-flows. Mange cash outflows. Use a budget. Invest surplus cash. Focus on profitability strategies. And avoid paying more for a loan or line of credit by setting up alternatives before they are needed.
Growing companies need cash to finance their growth for things such as:
- Working capital.
- Short-term cash needs.
- Carry receivables.
- Purchase a new venture.
- Renovate or move to a new location.
- Consolidate existing debts.
- Purchase equipment.
- Commercial real estate acquisition/refinance.
By taking control of your finances you can make the difference between profit and loss, and the success of your business.
3) Package Preparation
To complete the process, a company must prepare the loan “package” for lenders. This is where so many companies fail, either by being poorly prepared, or by submitting the wrong information.
Let DMR Help You Succeed
At DMR, we’re experienced at helping companies overcome the hurdles of financing. Finding the right lender can be a challenge, so we concentrate on helping companies take all the necessary steps in preparation for financing, and then to match them to the right lender.
We can help with:
- Business Financial Consulting
- Business Plan Development
- Cash Flow Management
- Lending Package Preparation
- Lender/Client Coaching
- Seminars/Workshops
To learn more about the above services, click here.
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