Small Biz Survival

The small town and rural business resource

A row of small town shops

Three things that kill your chances to get business financing

By

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.

Read the whole article.

About Becky McCray

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.

Filed Under: rural

Wondering what is and is not allowed in the comments?
Or how to get a nifty photo beside your name?
Check our commenting policy.
Use your real name, not a business name.


Don't see the comment form?
Comments are automatically closed on older posts, but you can send me your comment via this contact form and I'll add it manually for you. Thanks!

Comments

  1. Business financing is needed for any kind of business may be a small venture or a big one.But we should follow some tips to get finance.Recently i had gone through a site which will provide information about the business financing solutions.They will give some tips and solutions for the finance needers

Howdy!

Glad you dropped in to the rural and small town business blog, established in 2006.

We want you to feel at home, so please take our guided tour.

Meet our authors on the About page.

Have something to say? You can give us a holler on the contact form.

If you would like permission to re-use an article you've read here, please make a Reprint Request.

Want to search our past articles? Catch up with the latest stories? Browse through the categories? All the good stuff is on the Front Page.

Shop Local

Buy local buttonReady to set up a shop local campaign in your small town? You'll need a guide who understands how we're different and what really works: Shop Local Campaigns for Small Towns.

Best of Small Biz Survival

More of the best of Small Biz Survival

%d bloggers like this: