The most important thing a business owner can do for their business is to create their business to sell it.
Sell it, are you asking?
Yes. Build for sale.
Each decision, a business owner must be based on this thought. If an entrepreneur can base his business decisions with this underlying idea (in terms of funding), they will be put in place for long-term success.
Loan institutions base their acceptance or declination on one thing.
Is the company a risk of attractive loan.
There are 20 key points that each business owner must have put in place to be approved by financial institutions when their subscription team is critical to approval or decline a loan application. Many of them are small ideas apparently devoid of meaning. However, see it with the eyes of the lenders.
Banks and loan institutions receive so many applications of business owners who, frankly, have no business that requires a loan. Their business is not configured to be lent. Banks do not even visible these entities as viable companies. So the first step of passing the computer guidelines is to have them in place.
In addition, if you go to the bank and you are not in place, the credit agent would get a two-digit code of the computer system and everything he said that “the loan application decreased”. Your credit agent, without investing some time in the question, would not know exactly what you needed to do differently to be approved. Credit officers certainly do not have the subscription guidelines for their business.
In this article, we will examine the three main reasons why business owners fail the business building and businesses.
The first is simply that the owner of the company does not have everything that is dotted and crossed in their business. Things like having a number of 800, be listed in the 411 directory and have a dedicated fax line is a must to a business owner looking for funding. Many business owners that I speak are small businesses, who are simply looking for their financing options. It is impressive to see the amount of companies that do not even have these first three steps fulfilled. Remember that the goal here is to have your business attractive on paper. In the eyes of a lender, if you do not have a number of 800, you are suggested to own a “mom and a pop shop” and are not configured to succeed.
Second, business owners have not started to create their business credit. There are good ways and bad ways to build the structure of your business credit. In the eyes of the lender business owners who come out of seeking renewable credit lines and are refused (due to reasons outside the scope of this article), it seems that they fish for funding. It is imperative to request good types of credit lines and be approved for these lines when establishing your corporate credit from GO GEL.
Third and most relevant for most entrepreneurs: they did not separate their personal liabilities from their business. It is important that a business owner has good claims in his business. But, and what is equally important, is that the personal credit of business owners is not linked to the company, in any case possible. There are two reasons why you would like to separate from your business. If anything happens to your personal financial situation, you do not want it to be the reason your business has failed in obtaining funding. Secondly, should it happen to your business, you do not want it to affect your personal credit.