Tips For Getting a Business Loan #3
Tips for getting a business loan: Know Your Numbers Before Applying For a Business Loan
In part 3 of our tips for getting a business loan series we examine several important aspects business owners should consider before applying for financing. The concepts are borrowed from small business author and Forbes contributor, Ty Kiisel. You can access the full article on Forbes.com by Ty Kiisel here. His book Getting a Business Loan: Financing Your Main Street Business is available on Amazon.com.
The previous two posts in our tips for getting a business loan series (part 1 and part 2) discussed business owners making educated decisions to improve their businesses. For part 3, we will focus on how to make the decisions.
Part 3: Know your numbers
As a small business owner, being able to read, understand and evaluate financial documents is a must. Without this knowledge, it is nearly impossible to gage the success of your company. The analysis of your company’s books is of utmost importance before applying for financing. This lets you know exactly how much capital you need (and can support) to achieve specific projects or goals. Know how much you need, what you need it for, and how the loan will affect your business day to day.
In today’s business world, we are more connected than ever.
Use the resources available to you. They may be CPAs, colleagues or even just online search engines and inform yourself. Track and follow-up on your cash flow regularly. This will ensure your company 's financial success for years to come.