Although you donâ€™t want to have to say no to your small business customers, it could be that they just donâ€™t meet your requirements for a business loan. But that doesnâ€™t have to be the end of it. There is an alternative.
The US Small Business Administration is a government department aimed at helping small businesses. If youâ€™re one of their approved lenders, you can steer your small business customers in their direction as an alternate source of finance.
As an SBA approved lender, youâ€™ll be familiar with their application processâ€¦ and youâ€™ll know itâ€™s no picnic. Weâ€™ve got some tips on how to help your small business customers navigate the dense thicket of SBAâ€™s administration, so you can turn a negative situation into a win-win.
You and the SBA will want to be confident that an applicant knows their business inside and out. A well-prepared application and a business owner whoâ€™s ready to answer all questions relating to their business is essential. So when your customers are preparing their application, encourage them to:
At the end of the day, itâ€™s all about due diligence. The better prepared they are, the more streamlined this often difficult process will be. Remembering that the funds are coming from you, Itâ€™s a good idea to sit down with your small business customers and carefully go through their application to make sure they havenâ€™t missed anything out.
Here at TSBC, we can offer you great content around helping your small business customers to increase their chances of success when applying for any of the SBA loan programs. Contact us on www.tsbc.com/contact to find out how we can help you.
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.