Happy Sunday! Welcome back to SUNDAYS & BUSINESS, This week features Jerry Freedman from Freedom Business Financing with 3 easy to implement tips on Preparing Your Business for Bank Financing!
Financial Statements
Clean and accurate financial statements are vital for all businesses. Lenders rely on them to make informed lending decisions. Making sure that your books are neat and done punctually, is integral to the lending process (it also will help you manage your company’s finances).
Personal Credit
Lenders rely on the business owner’s personal credit score and history to understand the credit worthiness of an applicant. Late payments, charge-offs and settlements that appear on an applicant’s report, will significantly decrease the lender’s appetite to approve a loan application. Try to have all credit issues cleaned up before you apply.
Distributing Profits
Retaining profits signifies your investment in the company’s future success. When lenders notice large distributions, they assume that the owner is not invested in their own company. Lenders are not seeking to assume the risk that an owner refused to take on.
We hope you found this week’s episode insightful and helpful.
Stay tuned for more exciting guests featured on SUNDAYS & BUSINESS and their expert advice on various professions and industries.
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Have a successful week ahead!
Pincus Schiff is a payroll software specialist at Friday App, where he helps businesses simplify payroll, stay compliant, and automate their workflows. He writes about payroll best practices, compliance, and the latest in workforce technology.
