MADE Magazine #MADEBlueprint - Page 28

MADE INC F O UND E RS ROW: 4 T H I N G S TO CO N SIDE R WHEN G ET T I N G A B USIN E SS LOA N IN THE new year MADE BY JASMINE BROWLEY Obtaining a loan can be critical to the growth and success of a business. However, the process can be very time consuming, which is difficult for entrepreneurs who already have limit- ed time to spare. MADE sat down with Mason Cole, co-founder of business law firm Cole Sadkin, to talk about the best practices for obtaining a new business loan to make the process less taxing on the already busy schedule of an entrepreneur. 1. Determine Whether You Really Need a Loan. “Most new business owners think it’s a good idea to get a loan when they’re in financial trouble, but that’s actually the time when banks find your business most unattractive,” Cole said. Mason advised that business owners take a clinical look at their finances and determine where they could cut costs and organically decrease their debt to profit ratio before reaching out to a bank because otherwise, the likelihood for rejection is high. Another option is to seek out a private investor that offers a reasonable repayment plan. “Private investors are more likely to create customized terms that are curtailed to the business situation as opposed to big banks that have a more cookie cutter approach to to loan distribution,” Cole said. Action step: Turn first to the local Small Business Development Center (SBDC), which is most likely associated with your local community college. You can also post your business plan on sites that bring angel investors together. The two most reputable sites in this area are: Gust Angel Network. 2. Know Where to Look. | 28