Because so many entrepreneurs spend countless hours preparing and
applying for a loan only to be turned down immediately, it is important
that business owners understand how they are viewed in the eyes of a
lender - whether they need a loan today, or may need one in a year.
Thanks to recent advances in technology, this task is getting easier.
The industry is beginning to evolve, and some forward-looking lenders
are realizing that small business owners are their partners in the
lending business. Neither side has the chance to benefit when loans are
turned down. Knowing that a healthy small business is a healthy
borrower, these lenders have developed interactive tools to help
business owners. These tools:
- show you how banks view your business
- provide insights into how to improve your profile
- show you your lending options based on your business data
These new interactive tools can give an owner insight into what a
lender is thinking, and what the lending options might be. Armed with
this knowledge, a business owner can tailor a proposal and improve the
chances of getting a loan or finding the right type of loan.
Lenders are demanding when it comes to business owners. If rejection
is the only service provided by a particular institution, you may need
to find another that will work with you to improve your profile and get
the capital you need.
Gordon Brott is Director of Marketing for On Deck Capital,
which has developed small business lending tools and has provided over
$80 million in loans to thousands of Main Street businesses across the
country since 2006.