How to get a bank to say “yes”:
Financing is not just dollars and cents, it is also a mindset that works as a guide. Financing a venture can take several forms from loans to lines of credit and non-traditional lending options.
Financing is crucial for starting companies and it is even more critical for growing companies as they plan for expansion and growth.
So where can a new start-up company go to secure its initial funding? Banks, other lenders, investors? Some people use personal money to start their business, others use family and friends, but what is the best approach in securing initial funding?
If we were to advice a new company on which strategy to use, we must first understand the lender mindset and what they’re looking for. First, you need to understand that bankers see business ventures differently than investors. The lender’s primary concern is repayment, while investor’s primary concern is the potential and the possible economic and/or social impact. Knowing this from lenders, borrowers should focus their language within their business plan to reflect repayment (how the business plans to make the loan payments). Basically, you’re showing the lenders that there is money available to make on time payments, whether these funds are from the business sales or personal. This will help strengthen the loan request. The loan application and the business plan should be the platform where we could convince lenders that we are a low risk. Lenders are not open to high risks (for the most part) therefore, stating how the loan is going to be easily repaid will put the lender’s mind at ease and most likely on your side. Keep in mind that the business loan officer is your “champion” with the bank, borrowers do not really get to present their loan to the underwriters who make the final decisions. Therefore, it is key that you have someone who can “sell” your loan for you.
Make sure your loan officer really understands your idea, your approach and how you plan on making money with your business. I have found that many business owners have difficulty presenting their ideas in a clear and concise way. I would strongly advice that you present your business idea to a business coach/advisor who can be honest with you and help you make your “pitch” clear and easy to understand.
Veterans have a huge advantage when applying for government contracts
1. Financing Options
2. Legal and HR Support
3. Exporting Opportunities through Trade Delegations
4. Entrepreneurship for Youth and Military Spouses
Entrepreneurship is exciting for many veterans, bringing with it the freedom to create new paths and the reward of discovering new ways to overcome challenges. For veteran business owners to truly succeed, it is important to understand the three (3) types or “Mindsets” of entrepreneurs.
One: Entrepreneurs – These are people who enjoy creating and they welcome new challenges. Their main drive is innovation. These people see opportunities where others do not.
Two: The Shop Owner – These entrepreneurs are people who enjoy running and managing the day to day operations of a business. Their main drive is consistency. These owners see the business as a long-term investment.
Three: The Executive – These entrepreneurs enjoy the “speculative and potential” side of the business. Their main drive is growth. These people understand the potential of a business and how to multiply it in the marketplace.
According to the National Coalition for Homeless Veterans more than 40,000 homeless vets receive compensation each month, but that’s not enough to find affordable housing “Many vets have skills learned through the military that are not applicable for occupations in civilian life”. The Veterans Chamber of Commerce (VCC) is in an ideal position to help our fellow veterans through self-employment, to discover new ways of supplementing their income.
San Diego Veterans Chamber of Commerce
Provides a platform where entrepreneurial-minded veterans can access resources, network with peers and receive mentorship from fellow veterans.
The Veterans Chamber of Commerce (VCC) was born out of the desire to provide a platform for entrepreneurial like-minded Veterans to collaborate and share dreams and business goals in a welcoming environment surrounded by fellow Veterans.
Article by,
Joseph Molina
Veterans Chamber of Commerce Executive Director
[email protected]
www.vccsd.org
