Are you looking for money in this tough lending environment?  Have you done your homework?  Lenders don’t hold your hand and they won’t tell you what you’re doing wrong.  They’ll just say “No”.

Here are a few points to make you better prepared for approaching a lender:

1. Have you tried to restructure your cashflow? Perhaps you really don’t need a loan. Rather you need to run your operations more efficiently.   If you haven’t considered this go no further.
2. Is the loan an urgent or an important need? If it’s urgent and the bank or funding source smells desperation…it’s not a good scenario for reaching a yes answer.
3. What you will use the money for? Can you provide a use of funds schedule that is defendable?  Think equipment purchases and job creation to be convincing.
4. Does your business plan support your need for financing? Funny how we can stray from the original purpose of our business and then find we need more capital.  If your financing requirements and your business plan don’t align you should not approach a lender until they do. This may mean you shut down a part of your operations and then find you no longer need a loan.
5. What does your organization chart say about your company and your management style? You don’t want the lender to conclude the team you have in place can’t execute the business plan you present.  If you are thin at the senior level consider forming an advisory board.  An advisory board will show the lender you are committed to covering the gaps even if you can’t hire.  Be able to explain the situation so the lender can approve your request.

Please contact me if you need an objective review of your lending request.