By Karlene Sinclair-Robinson
There are so many mistakes business owners make during the start-up and growing phases of their businesses. These blunders could be trivial while others could be detrimental to many companies.
I get it! You made mistakes. I did too! Who knows? You might make more blunders in the future, especially if you don’t know you’re making those said mistakes.
The opportunity to finance your business could catapult you on the track to growth. Through borrowing, you could increase revenue, hire new personnel, add products or services. Whatever it is your business needs, borrowing to finance your business expansion needs is certainly a way to leverage getting there.
It is important to know what you can or cannot do when you try to borrow. Whether you are going for a bank loan, microloan or another alternative financing solution, there are a few things you should not do. This article will focus on one key mistake that could easily derail your chances of successfully borrowing other people’s money.
#1 Financing Mistake You Should Not Make
The availability of financial records is essential to funding any business. When a funding source requests a business’ financial records, it is imperative that these documents are provided promptly.
Providing all applicable documents can speed up the financing process. Accessing capital can make the difference between staying open or closing your company for good. Successfully securing financing can afford you the opportunity to meet upcoming deadlines such as payroll, taxes, or other contractual obligations.
Delaying or being evasive during this process will only be detrimental to you, the borrower. This tactic tells the funding source that you are not ready; you might be hiding something or simply put, lying about your business and its financial position.
If you are a very private person or sensitive about sharing financial records outside your company, you might want to consider not going through any loan process. If your concern is how information is shared, then be specific when asking questions in relation to this aspect of the process.
The funding stages will require various records. These documents could include such items as your personal financial statement, credit report, income statement, Profit and Loss Statement, Balance Sheet, Cash Flow, Tax returns (either 2 or 3 years), several months of bank statements, to name a few.
I highly recommended that you get your personal and business financial documents in order. Be willing to share with qualified sources. Don’t be afraid to question the need for submitting particular information; however, never come across as trying to hide or use delaying tactics to get around providing those financial records.
My advice: provide what the lender requires to get you what you need.
Would love to hear how this or any of my other articles has helped you.