Years of low interest rates and easy credit have come to an end. On the heels of a few bank failures and rising interest rates, nearly half of all lending institutions have stated that they’ve tightened their lending standards at least somewhat.
While it may be more challenging to get a business loan at the moment, it’s not impossible. Your company’s virtual CFO can help you navigate a changing lending landscape, ensuring your business gets the financing it needs.
Work With Your Current Lenders
If you have an existing relationship with a bank or another lender, and you need to apply for a new loan, turn to that financial institution when applying. Your current bank knows your business and your financial history and may be more willing to lend you money than a new bank.
A vCFO can help to strengthen your relationship with your current lender, especially if the CFO was the person who introduced you in the first place.
Organize Your Finances
Now more than ever, having your company’s finances in order is important. You need to know how much money is coming in, what’s going out and what your projections are. If that all seems overwhelming, your vCFO can help. They’ll work with you to develop your financial statements, prepare for taxes and develop a business strategy.
Look for More Collateral
Tighter credit requirements mean lenders typically want more security from the businesses they loan money to. You may put their minds at ease by providing more collateral when you apply for a loan, such as real estate or accounts receivable. Your vCFO can help you determine a good source of collateral and how to approach the lender with it.
Consider Other Sources of Financing
Bank financing is one way to support your business and improve your cash flow. But it’s not the only option. If you’re struggling to get approved for a loan, your vCFO can provide you with other options, such as working with investors or considering crowdfunding.
Talk to Your Virtual CFO
Your company can continue to thrive, even in challenging economic times. If you’re wondering how to get a loan in today’s tough credit climate, the vCFOs at New Direction Capital can help. Talk to one of our vCFOs today to learn more.