No matter what business you are in, there are times when borrowing money makes good sense. Lenders regularly provide financing for all kinds of purposes including working capital, real estate, equipment, and lines and letters of credit. As your business grows, your business needs may change. Financial support from a commercial lender could be a solution to combating business growth challenges.
Smart Business spoke to Amanda Mahaney of Comerica Bank about how to make the business finance process easier for you and your business.
How do I find the right commercial banking officer for my business?
Commercial banking officers are in business to help your business succeed. Part of their job is to understand your business and to work with you to help build it and improve cash flow. To find the best commercial banking officer to fit your needs, ask your peers for recommendations. By networking, you will be introduced to more business owners who, with the help of their commercial banking officer, have conquered many of the financial obstacles you may currently face.
Feel empowered to interview several commercial banking officers until you find one with whom you are comfortable building a relationship. It is essential to disclose the details of your financial history and plan for business growth to your commercial banking officer, so strive to establish your banking relationship with an officer you trust.
What are the key components of a solid business plan?
Your business plan should be a carefully thought-out document. Serving as the blueprint for your company, it should outline exactly what your business is, how and where you will run it, how you are going to finance it, how much it has or will earn or lose. It shows the risks and strengths of your business, describes the market, outlines your long-term goals, and sets out the milestones you must reach. In short, it is an accurate and realistic description, usually designed for investors or as a checklist and set of benchmarks to measure and develop your business performance.
Your business plan lets you set out your vision and outline a strategy to make it happen. With your main goals and other objectives defined, it is much easier to set targets, timetables and budgets. Decisions about whether to buy or lease manufacturing equipment, employ more staff or invest in public relations or advertising become much easier.
