It’s common for small businesses to slip into bad habits that limit their ability to get funding. From unscreened customers to generous payment terms, here are some of the most common reasons lenders will not loan to small business owners.
1. Not putting profits back into the business
When you hear these pleasant words from your accountant, “You should take a draw before the end of the year,” think again. Building equity in your business has a positive impact on your ability to get funding. A lender always looks at your debt-to-equity ratio. The more equity you have, the better your ratio. …Continue reading