Figuring out how a lender perceives an SMB as a good bet is no easy feat. It is a helpful undertaking as you plan out your cash flow and we found an article that does a good job of summarizing it for you. Since you are almost certainly a master at the product or service that you sell this is the ‘easy’ part of running your business. Any owner or C Level executive has to have a plethora of other skills and knowledge to be successful. Financing is one of these areas.
A survey showed that small business owners “have a limited understanding of what it takes to secure approval.” It takes time to build up credit and your personal credit is not weighted the same as that of your businesses credit. Personal credit is typically not enough to cover the debt and is also typically much less liquid than business assets. The factors used to evaluate an application:
SMB owners who understand these ultra-important factors and take the time to organize and have a proper application that includes these will have a much higher likelihood of success.
About Payplant
Payplant provides growth financing for entrepreneurs, by entrepreneurs. Its Pay Me NowTM digital invoice-financing service provides cash to businesses when their customers pay too slowly. Payplant helps businesses with PO and Invoice Financing, Asset Based Lending, Term Loans and Customer Financing products. Payplant works with companies that don’t currently qualify for traditional bank financing, have grown too quickly for their current lender or are at the point in their evolution where an influx of working capital can elevate their business to achieve rapid growth. Payplant delivers fast and reliable funding, at very attractive rates and is completely on demand. For more information, visit www.payplant.com.
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