13:19 10 January 2014
Since the recession, most banks are skittish about financing businesses. Nevertheless, the after effects of the global recession have died down and now businesses can capitalise on the new hope that it will take some time before we have another recession.
Bank lending is poised to rise in the year 2014 and it is essential for small business owners to get on the bandwagon to get noticed.
Have a Perfect Plan
Proper planning ensures that you are not caught off guard when you are asking for finances for your business. Sit down and come up with a concrete plan of action. Put more time into planning things out and you will come out in flying colours.
Build a Reputation
Most institutions rely on patterns of payment to tell whether or not you are worthy of them. In looking for finance, you should make sure that your payment history is spotless. This means that if it is in disarray now, a few corrective steps with the long-term goal of being trustworthy in mind, and you will be fine.
Personal Credit Report
Your personal credit report should be factored into the equation. Access to borrowed finance is subject to a lot of things with the primary of them being a credit report. Your business credit score might be perfect but yours is in shambles. Institutions not only look at business entities but individuals as well. Therefore, in managing your business’ credit score manage yours as well.
Research Is King
You should make sure that you apply to the right companies for financing. There are some institutions that will let you access financing only when you have an account with them. Take some time to learn the companies that you will opt to go for finance from.
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