Credit standards for small businesses are easing. How do I know that? Talking heads on television told me so. The Federal Reserve says loan officers are tightening credit while another report says credit is easing. Who knows the truth? Loan volume has been rising but certainly not for very small businesses, only for companies that have strong credit ratings.
Another report says bankers are desperate for loan growth. If you don’t qualify for bank credit today, sit down with a loan officer and ask them what has to change. They should be able to tell you how much your basic financial numbers need to change in order to qualify for a loan. Even if you don't need credit, it's a good idea to establish a line with your bank.
Besides a financial report that your CPA prepares, have a talk with a banker at least once a year. Companies large and small benefit from advance planning for credit. Opportunities can arise that can be lost if not grasped quickly.
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