Most business owners have goals to grow and scale their business. They often worry more about failure than success when it comes to growth, but success can come with a new set of unanticipated challenges. Missteps during an expansion phase could hinder a businesses’ chances for long-term success, creating challenges like those below.
For small businesses just starting out, or for those that have been in business for a while but need funding to move to the next level, applying for that first business loan is a big step. Business loans aren’t always easy to get. Banks and other lending institutions are very careful about the loans they write – after all, they have a legal and ethical responsibility to take good care of their customer’s money.
So what does a lender look for during the approval process for a small business loan? You’ll need to show that you and your business are a good risk AND that your business idea is not only feasible, but profitable as well. Balancing risk and reward is the goal.