Small Business Credit

Last week the Federal Reserve Bank of New York reported only one third of small businesses in the NY region applied for credit in the first quarter.

Earlier this week The Wall Street Journal reported that fully 27% of these small businesses didn’t apply because they thought they’d be turned down.

Three intangible suggestions that will help:

1. Cultivate your Bank Relationships – Get to know your key bank officers personally so they already know you and your business before you need them. Know their spouses name, children, interests, birthdays, anniversaries. Reach out to them on key dates, send them an article you came across that relates to their interests. Invite them to lunch, golf, something at least once a year. If you need financing now, it’s time to start catching up.

2. Loan Application Package – Of course all the Ts & Is need to crossed and dotted and then take it the extra mile and include your “polished story” for why you should be extended the credit you seek unencumbered by application format. Often this is the lynchpin that turns marginal situations into credit.

3. Delivery – Deliver your loan application package that includes the extra mile work personally to the key officer(s) you know because you’ve followed step 1 above and spend some time with him/her while you’re there.

Each of these intangibles help!

If you’ve taken each of these steps and still haven’t sourced the credit you’re seeking, see — Asset Based Lending that I’ve written about elsewhere in my blog that can easily be accessed at the lower right “Browse By Tags“.

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