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.
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