Be Prepared, Know Your Finances
Think of your conversation with financing company like you would an interview. You need to prepare.
How do you want your potential financing partner to see you? It’s important for them to not only like you, but also view you as a suitable business owner who actually needs and will benefit from the funding. So tell them. Put in the time to make your case airtight. Like a business looking to hire a new employee, a lender is going to need to know a few things about you before they make any final commitments.
Think back to the days when you weren’t a business owner. Tap into the mind of an interviewee and prepare for the following three questions:
- What do you need financing for, and how will it be beneficial to your business? The lender wants to know why you’re getting the piece of equipment that you asked for. Tell them how it will be beneficial and how it will help grow your business.
- How do your finances look? Are there any red flags that have caused past lenders to shy away? Don’t go into the process blind. Pull your credit report and any recent financial statements that you have. If you see anything that could be construed as a red flag to the lender, try to figure out why it’s there. At the very least, be prepared to talk to them about the issue. Also keep an eye on your PayDex Score. This score generated by Dun & Bradstreet reflects your business’ credit history and repayment behavior. Anything over 80 is considered healthy, so be sure to have an idea of where you stand.
- When do you need the funds? If you’re looking to receive funding very quickly, you should tell the lender right away. This way your finance manager knows to speed up the process for you. Don’t worry, though. If you tell them you need the funding fast, chances are they’ll do whatever it takes to make it happen.
Knowledge is power. It’s easy to prepare for interview-like questions when you know the pressure is off, and you have all the right information. Once you think you can answer those questions confidently, it’s time to start your financing journey.
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