You’ve got a great business idea and you’ve written a promising business plan. You’ve researched market conditions and you’re clear about your brand. Everything seems to be in order for launching your big idea.
But what about money?
Realistically, how do you secure the financing you need now – and into the future - to get your business off the ground?
“One of the nice things about a community bank like Bank of St. Francisville [BSF] is that we don’t take a cookie cutter approach,” says Vice President of Commercial and Mortgage Lending Aimee Cook. “If you come in with a solid business plan, have good credit and can demonstrate a solid track record, we can help you find the right lending package to suit your needs.”
Cook says it’s important that your business plan includes realistic projections concerning expenses and revenue. Lenders also want to know that you have enough funds in reserve to weather the unexpected.
Moreover, it’s critical that borrowers understand they will need to invest at least some of their own resources into the business.
“It definitely makes for a better application when we know the borrower has some skin in the game, says Cook. “That could mean liquid cash, equipment or equity.”
There are lots of options for small business financing through BSF. Lending officers will consult with borrowers about their best options, which could include:
Lines of Credit
A revolving line of credit helps many types of small business owners with their immediate cash flow needs. This lending vehicle also helps established businesses grow through things like the purchase of new equipment, investing in marketing campaigns and other projects. Lines of credit are capped and are paid off when the borrower is ready. Until then, the borrower makes interest-only payments each month with rates that generally float around the prime index.
As an authorized SBA lender, BSF can help a small business obtain a Small Business Administration, or SBA loan. The SBA doesn’t actually do the lending – the authorized bank does. But the authorized bank is guaranteed to only absorb 25% of the risk if something goes wrong. There is some paperwork involved in obtaining such a loan, but BSF’s loan officers will help facilitate the process. An SBA loan may be the right move for certain businesses.
Small Business Loan and Guaranty Program
Louisiana Economic Development’s (LED) Small Business Loan and Guaranty Program also works directly through a partner bank like BSF. Businesses must be domiciled in Louisiana to be eligible for this program. Moreover, loans must help a business either retain or expand jobs.
BSF offers other loan products as well that can be tailored to a small business owner’s needs. To make an appointment to discuss your financial needs, call us at (225) 635-6397 or make an appointment HERE today.