Business Credit - How to Get It - A "Snapshot" That's in Focus and a Solid Business Plan Are Some of the Keys

June 2, 2008

Ggbweb

What, if anything, can a business owner do to position his or her company to obtain the credit availability that it needs to both operate, and in many instances, survive in today's ever changing and volatile economy?

This article is intended to highlight several critical factors that providers of business credit view as vital when considering your company's request for credit, which may include many different types of credit facilities such as a working capital line of credit, a fixed asset/equipment non-revolving line of credit, term loan or mortgage loan. Paying close attention to these factors can enhance, and in many cases provide the key to your company's obtaining the necessary credit availability that you are looking to obtain.

The first factor is what many lenders call the "snapshot" of the company at a specific point in time. This is usually comprised of your company's most recent financial statements and consist, at a minimum, of a balance sheet and profit and loss statement. These financial reports provide a prospective lender with a detailed and comprehensive picture of your company's current business operations and profitability as well as a reasonable indicator of future growth. It is an effective tool in your company's pursuit of credit. Depending on the lender, an in-depth interview may be conducted with the owner(s) or senior management to allow the lender to become more intimately familiar with both the company's operations and its decision makers.

Another factor to consider is a well defined business plan. Having such a plan in place demonstrates that you have already wisely considered your company's future strategic growth and related financial projections, which addresses...

You may read more at the link below.

by: Gary G. Breton, Esq.

BusinessWest
May 26, 2008

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