Of course this is not true, but given the effects of the great recession of 2008, it can seem that way sometimes. Yes it can be hard, your business hits a snag and your bank doesn’t want to lend any more money to you. There are a couple of keys to avoiding this situation.
Keys to Getting Your Business a Loan
- Start with a bank and banker that will stick with you as your company goes through economic cycles. I am biased, but a strong community bank is the first place I would look for a loyal relationship.
- Know that almost no bank can lend money if the company is losing large amounts of money and doesn’t have equity in the business to weather the storm. If you have strong equity in your business, and have a plan to weather the downturn, a good loyal bank relationship should be able to find a way to provide the proper financing.
Be Careful Picking a Bank and a Banker
- Look for a bank committed to the community where you do business.
- As for the banker, if you don’t have an ongoing relationship where the business banker manages all aspects of your banking, and at the very least checks in with you periodically, then you may not be able to count on your bank in difficult times.