Landlords can be a source of financing. It is not uncommon for a landlord to contribute dollars or rent concessions to development of a tenant’s space. For this loan, landlord may require a Percentage of Gross Sales Clause in lease as repayment. Extended vendor terms for purchase of product may provide short-term operating capital loans.

In event that additional credit strength is required, loan guarantors or borrowing someone’s credit may help borrower qualify for less expensive financing. Be flexible. Your final package may be comprised of several lending solutions

PRESENT A CLEAR AND UNDERSTANDABLE PROPOSAL Lenders need to know who you are personally, professionally and financially. The lender needs to evaluate Income Tax returns (Corporate and Personal), financial statements (income statement and balance sheet) and a cash flow projection. The balance sheet has to look a specific way. The Current Ratio should be at least 1:1, and Debt to Equity Ratio should be at least 4:1. Be specific as to how money is going to be used and how it will be paid back. Lenders want to know what is securing their debt. Lenders evaluate quality of collateral, and want to insure that it is adequate to secure debt in case of default. A secondary source of repayment is required prior to granting standard financing. The personal guarantee of borrower is often required. In some situations, a lender may seek secondary collateral. Secondary collateral is simply some other asset in which you have equity or ownership, i.e. equipment, property, inventory, notes. Business funding is not difficult if borrower is creative and realistic. Know how much money you need and how you are going to use it. Be prepared to defend your needs and anticipate lender’s questions. In event that a lender cannot grant your request, perhaps it is way a loan is packaged. Find a lender who is willing to make recommendations that will help you find financing. A good lender will tell you quickly if they can help you or not. If an intelligent and organized package is presented, a timely response is warranted.

2. You are overtrading by selling more than you are capable of dealing with financially.

3. You have excessive short-term debt. 4. You are missing discounts on your payables or you are paying them beyond stated terms.

5. You are collecting your receivables slowly and outstanding receivables are piling up.