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SmallBizChat Recap: Where to Go When the Bank Says No (Part 2)

 

Continued from Part 1 of Where to Go When the Bank Says No

Q6: Why is alternative financing necessary to today's business owners?

Karlene continues: With the issues affecting business owners today, many would not make it without the help of these sources. When balance sheets and Profit & Loss statements are not in-line for bank financing, it is critical to have options. #smallbizchat

High risk, cash &collateral poor biz owners need other financing options to deliver their products or services to market."

Q7: Why is there so much emphasis on a business plan when seeking financing?

Karlene continues: It gives the lender or investor an understanding of why you need their money. It tells the lender how much you know about your business, industry & financials. The plan should give the lender a clear picture of how you will make the business work. Lenders want to know how you plan to repay them. This should be in the plan and must be logical. Lenders want to know to your plans for repaying the loan – provide exit strategies. Never forget that the business plan is your ‘road map to success’.

Q8: Why are so many financial documents needed to access capital?

Karlene continues: Your financial records determine your RISK level to any lender. RISK tolerance is a key factor to lender. These records tell the story of your financial history & your level of responsibility where money is concerned. Financial underwriters will deny a loan request faster if they encounter problems getting these docs. If you drag your feet when submitting financials, it will convey a message that something is wrong. Like buying a house, these documents help to determine the interest rate you’ll pay."

Q9: Is credit truly necessary to accessing money for my business?

Karlene continues: Your credit is your ‘report card’ for life. Use it wisely. PLEASE, PLEASE don’t hide from it. Our current credit system is the gage to your borrowing power, be sure to understand it. No matter what your score is, stop being afraid of what is on your credit report. Understanding a particular lender’s method of financing will decide if credit is a necessary."

Q10: Why is it important to diversify my business to meet today's challenges?

Karlene continues: Create ways to build your business by understanding who your clients’ are - consumer, business or government. Using feedback from your clients and market research, add services or products. Develop a niche for your business that is in-line with your mission. When adding clients, define who is more likely (guaranteed) to pay you."

Q11: How do your true feelings towards "money" determine your success in life & business?

Karlene continues: When your money views are not in true alignment, you will not succeed as quickly or prone to fail. Your “Why” must be based on serving others, filling a need or solving a problem. Your personal money beliefs always come out in everything you do. Take a serious look & be true about it. When you face the true issues affecting you, personal and business, you will start seeing the success you desire."

Q12: How do I attain the level of success I'd like to see in my business?

Karlene continues: Being in business is about serving others. Operate your life and business with that in mind. Listen to the needs of others and line them up with your core values to find the success you seek. Success comes to those who’ve given of themselves without the “What’s in it for me” mentality. Where you are spiritually, mentally and emotionally will either stop or accelerate your success rate. Take money seriously. Get to know it, befriend it. Work hard!

That's it for this week!

Up next week Wednesday at 5 PM PST:

Cheers!

+Alice Ly
Social Media Manager
Lucrazon Ecommerce


1 Comments To "SmallBizChat Recap: Where to Go When the Bank Says No (Part 2)"
Interested - 04/14/2014

Where would an individual find Lucrazon's cash flow statement before deciding to become a brand partner? I realize that Lucrazon is a private company but before investing thousands if not millions into a company I do my due diligence.

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