Steps to Business Financing
Post on: 9 Август, 2015 No Comment
Identify your financial needs
Commercial lending can be used for initial expenses, financing ongoing operations, or major investments in equipment.
The most common — and generally the easiest — reason to get a business loan is for expanding your business, either by opening new locations, entering new territories, or otherwise increasing the scope of your current operations. Lenders see that your business is succeeding and are willing to loan you money to do more of the same.
Other reasons for a bank loan are to:
- improve facilities and conduct renovations
- invest in major equipment
- boost working capital
- build up inventory
Unfortunately, the time when you need money the most is when it’s hardest to get a loan: during the startup phase. You simply won’t get a new business loan by walking into a bank with an idea and enthusiasm — and the same goes for buying an existing business. You need to demonstrate an understanding of the industry, business acumen, and commitment.
You need to be clear on how much you need. Thoroughly research costs and understand how the flow of cash in your business will influence your ability to repay a loan.
Know what lenders look for and assess your situation
Know what banks look for and prepare for it:
- Character and credit history of the borrower
- Loan documentation: financial statements, tax returns, and a business plan
- Cash flow history and projections for the business
- Collateral that is available to secure the loan
Get a credit report on yourself and your business. The smaller the business, the more closely the experience, know-how and overall character of the owner(s) will be evaluated. You are often judged on your personal credit — especially if your business does not have a long operating history.
smallbusiness.dnb.com/. If D&B does not yet have any information on you, they will allow you to voluntarily obtain a listing by providing them with some basic information about your business.
Find assistance in helping you get ready to apply
JEDC Business Consulting Service (BCS)
Juneau Economic Development Council
612 W. Willoughby, Ste. A
Juneau, AK 99801
Phone: (907) 523-2300
Fax: (907) 463-3929
JEDCs Business Consulting Service is available to small businesses throughout the Southeast panhandle. JEDC’s Business Consultants work with your existing or expanding business through a process of confidential counseling and coaching. Once your business’s specific need or problem has been identified, a consultant will work one-on-one with you to solve it. Consulting services are available to focus on business problems, while coaching services focus on the business owner. Counsel might center on revenue growth, cost analysis, market research, business planning, financing, expansion, customer service, marketing and sales, accounting and record keeping, human resources, and/or e-commerce. Coaching can address leadership capabilities, workload management, and/or achieving more satisfaction with business and personal life, as examples.
Upon requesting consulting services, a one-hour initial consultation is free of charge to all businesses. A first phase then offers up to 20 hours of consulting and coaching services at the very low cost of $25 per hour. For businesses wishing to go further, an additional 30 hours are available at a fee of $60 per hour.
Alaska Small Business Development Center (SBDC)
3100 Channel Dr. Suite 306 Juneau, AK 99801-7814 Phone: (907) 463-3789, Fax (907) 463-3430
Serving Alaska for over 23 years, the Alaska Small Business Development Center (SBDC) www.aksbdc.org provides free, confidential, business advising for small businesses throughout Alaska. Whether the business is a startup, already existing, or still just an idea yet to be realized, its five statewide locations are there to help. Each statewide center offers free business counseling, low cost workshops and business libraries.
Other SBDC Programs:
Procurement Technical Assistance Center (PTAC) Provides one-on-one counseling and conducts training sessions for business concerns interested in pursuing federal, state and local government contracts.
Technology Research and Development Center (TREND) Assists small businesses in the research and development of new technology in Alaska. TREND provides free one-on-one counseling, workshops and resource materials designed to identify a clients business assets and resources for taking a technology to market.
Rural Outreach Program for Entrepreneurs (ROPE) — offers free business counseling and training services in Southeast Alaska. We provide our services through group workshops and one-on-one counseling and training. Call us at 1-800-478-7232 to request a workshop in your area, or fill out our request form.
Service Corps of Retired Executives (SCORE)
Anchorage Office
U.S. Small Business Administration
510 L Street, Suite 310
Anchorage, AK 99501
Phone: (800) 755-7034
Assistance may be provided to existing and potential small business persons by retired executives who volunteer their time to assist others in their field of expertise.
Small Business Assistance Center (SBAC)
Office of Economic Development
Department of Commerce, Community, and Economic Development
550 W. 7th Ave. Suite 1770
Anchorage, AK 99501-3510
Phone: (907) 269-8104
Anyone seeking assistance or directions may use this service. The Office of Economic Development also has professional staff members the public may consult with by appointment, phone, or e-mail. This is a free service provided by the Office of Economic Development and is not funded by any program.
The SBAC links people or businesses to the State of Alaska’s network of partners like University of Alaska, Anchorage (UAA), the Small Business Development Center (SBDC), the Alaska Regional Development Organizations (ARDORs), the Made In Alaska (MIA) program, the Buy Alaska program or anyone just seeking to buy a business license online. Some examples of information that can be obtained is: * How do I start my business? * Where do I go for financing? * How do I write a business plan? * How do I sell internationally?
Alaska Business Development Center
Alaska Business Development Center, Inc.
840 K Street, Suite 202
Anchorage, AK 99501
Phone:
The Alaska Business Development Center provides direct hands-on, one on one consulting to Alaska small businesses and commercial fishers.
