Lenders & Investors Look for 11 Things part 1 of 3

First off, don’t write off the smaller banks too quickly.  A number of small banks have funds available and are often more willing to loan them, but you need to have been in business for over two to four years, depending upon the lending institution, and show proven profitability.  It isn’t easy, but if you have a sound company with a good plan you may be able to secure those needed funds.

Third Party Lenders are often a good source when banks decline your loan request. When you can show you have a healthy company they are usually able to be more creative than a bank. The criteria still includes showing a history for the business, and that it is capable of making a profit.

Potential lenders or investors are keenly aware of the risk and want a return matching that risk:  the greater the risk involved in the venture, the greater the return demanded.  There are a number of factors they will take into consideration when reviewing your Business Plan, however if you have a solid plan, your chances are greatly improved.  Some of those factors will be discussed next week.

Compliments of Lew West Business Consultants 

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