If you have a low credit rating, getting a small business loan can seem like an impossible achievement. Bank after bank talks to you, looks at your business plan, and turns you down. Even the national banks, the ones with branches everywhere you look – the ones you think could easily help you without even noticing the burden – are shaking their heads as they talk about economic downfalls and tough times. Without delving into the irony, what can you do now?
Sometimes the biggest isn’t always the best. Take a look around your community, looking past the big bank signs, and walk into a local bank. The people who work there, who own the bank live near you. They have an invested interest in your community and are more apt to put money into it, even if low credit scores are involved.
However, local contacts alone won’t get you that loan. Of course, community ties will ensure you get a "case by case" chance, but you still have to put your best foot forward. You have to have the best business plan and presentation you are capable of producing. The most important aspect, the one they will look at hardest is your cash flow. This shows them that your business can generate the money to pay them back, to stay alive. Have good cash flow and despite all other negatives, you have a chance in the right venue.
