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When it comes to planning for your business, you’ve no doubt put countless hours into preparing for the future with a business plan that outlines your strategy moving forward. Unless you’re working with a private investor to fully fund your project, an integral part of that plan might be finding a lending partner that can help bring your business to life.
In terms of business loans, there is no one-size-fits-all solution, and you may need to shop around to find a lending partner that offers the best solution for your particular business needs.
Consider the following as you work toward forming a new lending relationship.
1. Interview more than one lender to find the best fit for your specific needs. You want to be sure that you’re partnering with someone who not only provides an ideal loan but is willing to dig deep into your business strategy to offer solutions that are specific to your individual business needs. Your lender should be familiar with your industry, the specific challenges your business might be facing, and able to help identify solutions to help your business move forward.
Investing time to find the right lending partner is important to the long-range success of your business if your borrowing needs will be fluid as you continue to grow.
Here are some things you may want to consider:
2. Develop a forward-looking plan that will pay off in the long run. Whatever stage you’re at in your business, you likely have a vision of where you might be in the future. Business loans might be vital during start up or times of substantial growth, but you’ll want to be sure the solution you choose benefits you long term in addition to meeting your immediate business needs. Find a lender that is willing to work with you to provide input on your plan so you can adjust accordingly as your business grows and your loan needs change. Understanding the flexibility of your lender to meet your needs is important in the event that something unexpected comes up. Do your character, positive payment history, net worth and credit profile grant you the ability to borrow without collateral if you were in a pinch?
3. Compare loan options from lenders who made the final cut. Not all loans are created equal. There may be a variety of options available for your specific situation, and you may have to visit multiple lenders to find the best fit for you. Don’t settle for the first option that’s presented to you.
4. Work with a lender that will consider non-traditional lending solutions. In comparing loans, you might not feel like you’re hearing an option that works for you. Make it a priority to work with a lender that will think outside the box to offer non-traditional lending solutions that might better suit your needs. Following the above guidelines can ensure you’re familiar with the majority of standard options and will give you the opportunity to familiarize yourself with different lenders. At this point, if you haven’t found a loan that works for you, you should have a sense of the lending partners that are willing to think outside of the box to find a solution that works for you both by offering you the most value today and committing to your future success.
Elizabeth Hayward, vice president of business banking at Machias Savings Bank, can be reached at ehayward@machiassavings.com.
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Work for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
This special publication examines the innovation infrastructure in Maine and the resources available to help entrepreneurs at the various stages of their journey.
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