Getting business funding is a process that requires preparation. If you are unprepared, it will take longer to secure financing. To save time and put your best foot forward, follow these steps before heading to a lender.
Write a Business Plan
All lenders want a business plan that outlines: who you are, what your business does, what your business plans are, what your current financial status is, and more. You can use various tools to help you write a business plan, such as online tools, books, templates, etc. The Maricopa SBDC has many of these tools available.
Gather Your Financial Information
Lenders will ask for your tax returns, both personal and business. You will also need an expense sheet that shows how much money you need, what you will use the money for, and how much each of those items costs.
Be clear and specific about how you plan to use the money. Lenders will expect you to do your research and know the costs.
Create Your Financial Projections
Financial projections show the lender how much money you expect to make in sales, your expenses, and how much will be left to pay back the loan.
If you cannot show that you will have enough money to make the loan payment, the lender may not approve your loan. Financial projections are a critical item.
Get Help from Maricopa SBDC
The Maricopa SBDC can help you prepare to get in front of lenders. We can help you with:
- Reviewing your business plan and making sure it is ready
- Creating an outline for using funds and determining how much you need
- Working through creating your financial projections
If you are new to the Maricopa SBDC, please reach out. We are here and ready to answer questions. If you are one of our awesome clients, reach out to your counselor to make an appointment.
You don’t have to navigate the lending process alone!