Is Small Business Lending Easing Up?

For the first time in four years, some of the largest banks in America are easing up on their underwriting guidelines and criteria. Many small business however are still without money in their pockets. Without money one small business owners states, it is going to be tough to hire new employees and pay for outside products and services. Any small business owner can tell you that proper and smooth cash flow is key to running and operating any business. Without this cash flow, projects are put on hold, hiring new employees is way out there, and purchasing third party services is a long shot. There are a few ways that you can prepare yourself and your business for these new, not so rough, lending standards. First, make sure you have a business plan. It is most definitely possible to be approved for business financing with a business plan, but when the banks ask you for one and you say you don't have one, the bank would almost every time rather entertain a small business owner that has spent the time and the money to plan their business. Second, have a professional CPA put your financials together for you. Most accounting software programs have the option to print your financials in very nice format if you cannot afford a CPA. Banks are going to want to see your numbers. Are you cash flow positive? Are you making sales? Can you stay in business? They want low risk small business borrowers. Third, always know your own business credit and personal credit scores before the bank does. Today, it is very easy to find out what your business and personal credit scores are with the click of a button. Remember, once three banks have checked your credit and have denied you for a business loan, you can bet that all other banks are probably going to deny your request as well. Fourth and lastly, understand that perception is everything. If you act confident in front of the loan officer, you have all the documents you need in a nice package and you can walk the walk while talking the talk, you are much better off. Walking into a bank with a shoe box full of papers with no idea how bank loans work, is sure to get you a big NO. Think about the banks money as your money. Would you give you a loan? Would you lend your money to someone who isn't responsible and isn't prepared? No, probably not. Have you applied for a business loan recently? What has your experience been with the bank?