For small business owners in need of a loan, getting an application approved can seem as mystifying as the illusions performed in a Las Vegas magic show. But the process gets a lot easier with the right preparation and an understanding of the importance of cash flow.
A survey by the 12 regional Federal Reserve banks cited “accessing necessary credit” as the No. 1 challenge facing small businesses in 2016. That was especially true for outfits with less than $1 million in revenues; while 72% of larger companies were able to secure financing, only 45% of smaller firms could get the nod from a lender.
Getting a Bank loan business plan isn’t magic, but it does require meticulous preparation and an understanding of how bankers operate. Underwriting decisions are based on the 5 C’s of credit — capital, collateral, conditions, creditworthiness, and cash flow — and borrowers must show strength …