BLA Loan Literacy Blog

What are the benefits of a loan for small businesses?

Business Lending Advocate — Fri, 09 Dec 2022 22:25:29 GMT

Small businesses often face challenges when it comes to securing the funds they need to grow and succeed. Traditional lending institutions may be hesitant to lend to small businesses, leaving many entrepreneurs feeling frustrated and unsure of how to move forward.

Different types of business bankers - Business Lending Advocate

Business Lending Advocate — Mon, 16 May 2022 04:00:00 GMT

Getting a real estate loan is very different from applying for business credit cards or lines of credit. When you’re getting ready to apply, make sure that you build a relationship with the right type of banker, because not every banker can help you process a real estate loan! Though it is not exactly the same for all banks, listed below are the different types of bankers and their thresholds

1. Commercial Lender.

Typically, these lenders process loan requests over $1MM. In addition, they work with companies that generate over $5MM in revenue. These bankers have been trained to do credit analysis and will have a better understanding of bank policies in underwriting a commercial real estate loan.

2. Business Banker.

Typically, these lenders process loan requests under $1MM. In addition, they work with companies that generate less than $5MM in revenue.

3. Branch Manager/Personal Banker.

Typically, these bankers primarily work with consumer accounts and loans, and also help small business owners process loan requests under $50,000.

To learn more about the process of applying for a Real Estate loan,

join us for our next Real Estate Webinar on May 26th. Link to register on the Events page!

Banker Assessment

If you would like to see if your business is ready to apply for a business loan, take our 15 Question Banker Assessment now.

Click Here

How Money Shame Shows Up In Your Business - Business Lending Advocate

Business Lending Advocate — Mon, 09 May 2022 04:00:00 GMT

On May 6th, 2022, I hosted a webinar in collaboration with LiftFund, where we shared insights about how Money-Shame shows up in our businesses, and how we can work to overcome it. Through this webinar I aimed to educate all small businesses owners of the definition of money-shame, and how to become aware of it so it does not become an obstacle in their business.

Many would agree that money is often a topic they are most sensitive about, but one that they are the most in need of understanding.

Below are the five ways money shame may show up in your business.

1. Overspending

Overspending is spending money that you don’t have, or is when you make purchases on business investments that you don’t need or aren’t using. This isn’t to say that if you spend money at any time, you have money shame.

2. Underspending

Underspending is not spending any money because you’re too afraid that you’re going to lose it.

Fear is rooted in your underspending habits.
It prevents you from experiencing business and personal growth.
It can also prevent you from streamlining your business processes, which means you’re being overworked.

3. Undercharging

When you undercharge, you’re not making enough money to sustain your business. A lot of the work you’re performing isn’t even getting you paid. You’re not being paid enough for the work that you’re already doing, so you end up working double or even triple the amount you should be.

4. Being Pushy

Being pushy is rooted in a scarcity mindset, and because of that, you’re overly pushy with potential clients and customers. It can also present when you’re pushing somebody to buy, even though you’re aware that they are not your ideal customer or client. What you are offering really isn’t something that they need or should be using at this point in time. If we want to run our businesses on a level of integrity, we don’t want to manipulate people into buying something that they really don’t want.

5. Avoidance

Avoidance is the most common form of money shame. There are so many aspects of our business finances that are either easy to ignore or we want to ignore because it’s really not fun or comfortable to deal with.

It’s not taking care of your finances, your income and expenses, and your bookkeeping. It’s avoiding the money altogether.
You may refuse to look at your credit card or bank statement because you’re worried about what the numbers may reveal

These five ways money shame show up in your business can each be detrimental to your businesses financial health. In this webinar, I went more into detail about each of these, along with other ways money shame can be affecting you and how to overcome it.

If you’re interested in learning more about money shame and how to avoid letting it show up in your business, please check out our “Events” page to register for one of our upcoming webinars. In our webinars, we cover a variety of topics.

Banker Assessment

If you would like to see if your business is ready to apply for a business loan, take our 15 Question Banker Assessment now.

Click Here

Is your business prepared to apply for a business loan? - Business Lending Advocate

Business Lending Advocate — Wed, 16 Mar 2022 04:00:00 GMT

On March 16th, 2022, I hosted a webinar in collaboration with UTSASBDC to teach small business owners about the 5 questions every business should know the answer to before applying for a business loan. Through this webinar I aimed to educate all businesses of business bank lending lingo and requirements

From people interested in applying for a business loan but who don’t know where to begin, to people who have been declined for a business loan in the past and want to increase their odds to try again, this webinar taught the insights of how to become more prepared in approaching a bank and requesting a business loan and reduce the uncertainty and fear of getting declined.

Below are the five main questions I talked about.

1. Can you provide a Balance Sheet for the previous 2 years and current year to date?

A Balance Sheet provides a snapshot of a company’s finances at a particular point in time.

Today, do you have an updated and accurate Balance Sheet?

2. Can you provide a Profit and Loss statement for the previous 2 years and current year to date?

A Profit & Loss Statement, otherwise known as an Income Statement, summarizes the total income and total expenses of a business at a particular period in time.

Today, do you have an updated and accurate Profit and Loss Statement?

3. Do you have a current Personal Financial Statement?

A Personal Financial Statement provides a snapshot of the finances for an individual at a particular point in time.

Today, do you have an updated and accurate Personal Financial Statement?

4. Have you missed payments on your existing personal and business loans in the last 6 months?

Missed payments significantly affect your ability to get approved for a bank business loan

5. Do you know what’s in your Credit Report?

The information in your Credit Report is extremely important, and is a large factor in the banks overall decision about your loan request.

These five questions help business owners evaluate if they are ready to apply for a business loan. In this webinar, I went more into detail about each of these questions and how the bank uses them to evaluate you and your businesses financial health. They then take this information and come to an overall conclusion about your loan request.

If you’re interested in learning more about these five questions and what you need to do to prepare your business to apply for a bank loan, please check out our “Events” page to register for one of our upcoming webinars. In our webinars, we cover a variety of topics, all surrounding the world of business bank loans and lending

Banker Assessment

If you would like to see if your business is ready to apply for a business loan, take our 15 Question Banker Assessment now.

Click Here

Finding & Buying Your First Commercial Property - Business Lending Advocate

Business Lending Advocate — Mon, 24 Jan 2022 05:00:00 GMT

I’d like to thank Rob Rodriguez, CCIM, MBA and all of the other amazing members of Southside First Economic Development Council for inviting me to speak at their “Finding and Buying You First Commercial Property” panel. There was some great information presented by all of the panel members for small businesses looking to buy their first commercial property. Cyra Trevino with Verde Commercial Real Estate Group, LLC provided some great tips on looking for the property that is right for you, and Marcello Martinez from 1718 Architecture did a great job providing insights on how to approach building your first commercial property.

One of my favorite questions asked at this panel was “What must a business owner contemplate when purchasing a building absolutely get right?”

The top three things that I talked about in the panel to answer this question were:

1. Pulling your credit report.

Knowing what is on your credit report will give you confidence when presenting yourself to a bank. Once you know what inquiries are on your report, you will not have to deal with any surprises when applying for a loan!

2. Get your books in order.

Having a CPA or Bookkeeper is essential in accurately completing your financial statements. These are the key documents that the bank uses to determine if you can afford the loan.

3. Present yourself and your business in a written business description.

This description should include who you are, what you sell, and the history of your business; how you got started, where you are now, and where you hope to be in the future.

Conclusion

In case you missed it, I have included the recording of the panel below. Here, the other panel members and I go into much more detail about these questions and many others!

I look forward to participating in more discussions like these in the future. If you have any further questions about preparing for a bank loan, please feel free to reach out to me directly.

Banker Assessment

If you would like to see if your business is ready to apply for a business loan, take our 15 Question Banker Assessment now.

Click Here