Finance Your Business

Many small businesses fail in the first few years, and one reason why is running out of money. If you’ve ever watched the television shows Dragon’s Den, Shark Tank or The Apprentice, you will know that one of the most important ways to achieve business success is to get the finances right.

That means thinking hard about how you’re going to fund the business both at the start, and as it grows. Applying for a loan without proper preparation is why many small businesses are turned down.

It is important to understand how bankers decide whether your business is creditworthy or not.

According to Intuit: “Bankers lend on the five Cs of credit: character, collateral, cash flow (enough to service the debt), credit, and conditions. If cash flow and credit are weak, then you have to accentuate character, collateral, and conditions.”

Take stock of where you stand on these five factors. Over time, each of these can be improved. How you present yourself and your information can mean the

[Read the full story here ]
Source: Small Business Trends