This is an exceprt of a post by Marco Terry, Invoice Factoring Blog. He writes mostly about invoice factoring, but these points apply to any kind of business loans or financing.
Here are the three big “Don’t Do’s” of business financing.
1. Don’t be clueless about your own business
The biggest deal killer I see in my industry is business owners that are clueless about their business. … If you need financing you must be able to explain a) why you need money? b) how much you need? c) what you’ll do with it once you get it.
2. Don’t try and get financing at the last minute
Almost every day I get a call from a frantic business owner that needs working capital for his business – today – or he won’t be able to meet payroll. It’s a sad situation but there is nothing we can do to help them.
3. Don’t be unprofessional or rude
Every week or so I’ll get a call from someone who is just plain unprofessional or rude. They’ll ask for financing but balk and complain when asked about their business. … Almost 100% of these people don’t get financed.
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Becky started Small Biz Survival in 2006 to share rural business and community building stories and ideas with other small town business people. She and her husband have a small cattle ranch and are lifelong entrepreneurs. Becky is an international speaker on small business and rural topics.