How Do I Become Bankable?
Posted on
The term “bankable” is commonly understood in the business world and especially the financial industry to mean that a business can meet the lending requirements for term loans from a bank.
Because those standards vary tremendously, it may be more understandable if we look at the reasons that small businesses are most often declined. These include an insufficient personal credit score, insufficient collateral and insufficient profitable time in business. All these circumstances indicate high risk to a bank.
Community lenders like CEDF are often mission-driven nonprofit organizations created in order to help small businesses climb the latter of success with funding, advisory support and education. Community lending policies can generally be more flexible. We help our clients climb the ladder toward bankability. And we’re delighted when a client “graduates” and is able to access larger loans at better terms.
So, you become bankable by nurturing your credit score to respectable levels, saving rather than spending all of the profits to build wealth as an owner and within the business entity, and establishing a track record of profitable success.