Bank Relationships

Why do the banks never give me a break and what can I do about it?

a) Look for other sources of financing: Credit Unions, Trust Companies, the federal government's BDC, private lending companies(especially for commercial mortgages), personal savings, the equity in your home, your relatives, etc. Sometimes, factoring your receivables can be a short term solution.

b) Be prepared Any financial institution will be better impressed if you present a solid business plan with realistic goals, good management talent and a willingness to put something on the line

c) Give the banks what they want. If you already have a loan from the bank, you know they want to see your financial statements each month. The banks look at ratios on the balance sheet and profit on the income statement. And they only want it on the last day of the month so be diligent and make sure that your A/R more than covers your A/P. Make sure that you have every last sale recorded in the month. Its better for your income statement and the bank gives you more credit if it's in A/R rather than in Inventory

Bank prime interest rates