Small Business Funding: 3 Tips for Borrowing from Banks

by Elisabeth Suzio on August 30, 2011

Are you unsure of where to find the funding for your small business start up? We are bringing you the experts with the resources for just this thing.

Yesterday we told you about looking for funding in your own backyard, today we are giving you the tips for the next step in this process.

While banks are more hesitant to lend to small business owners, they aren’t completely unwilling.  “They want to be confident that the individual/business can pay them back,” says Danielle T. Douglas, president of Inspire Enterprises.

Follow her 3 steps below and you are headed in the right direction.

1) Have a strong overall credit score

  • The minimum generally accepted personal credit score is usually determined by the entity that you are borrowing from. For example, the minimum accepted personal credit score for a bank is about 680.

2) Have a well managed balance sheet

  • This demonstrates a compelling business case to a lender. If you need tips on putting together strong financials, don’t hesitate to check out our small business bookkeeping tips.
3) Prove you can pay them back
  • They want to see that you can actually generate revenues. You can prove this by finding customers who love your product or service, even if it’s just a small market test.
These last two tips can come from your business plan, which you might have already developed. If not, don’t worry! We have your guide to the simplest business plan outline available.

Come back tomorrow for even more small business funding resources. We will continue with these all week! Have you had a particular success with your small business funding? Share them below! We would love to hear from you.

Thanks to Danielle for these terrific small business funding tips. If you would like to contact Danielle or her company, please see below:
Danielle T. Douglas
Inspire Enterprises, Inc.
danielle AT inspiretovision DOT com
Here’s everything else you need to know about starting a small business!
Still unsure of how to fund your small business start up? Do you need answers now? Don’t panic! We have the small business experts here to help. Real people to help with your real problems.
Do you have even more questions about putting together your business plan? Or are you unsure of what your balance sheet should look like? Head over to our training videos to get tips on this and much more. You can’t afford to miss these great tips!
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