|
Bundle your loan application the same way you bundle your services
to get lenders to give you a bundle of cash or credit.
by Mark E. Battersby
When it comes to securing needed capital, few ISP owners can afford to leave
any stone unturned. Whether your ISP is looking for startup funds or searching
for money to expand an Internet operation, your ISP may be a bank manager's
perfect candidate to be awarded a small business loan.
Although a small business loan may not be an ideal source for startup
capital, banks can provide short-term funds that might be just the fuel your ISP
needs to grow its business. Banks make money by selling their services.
Remember, your ISP is the customer now ? there are many services that a bank can
provide your fledgling business operation.
Banking on banks
Today's banks offer a
wide-range of services and are continually pressing government regulators for
the rights to offer even more. Banks can prepare the payroll for your ISP
operation, buy your accounts receivable, collect your overdue bills, earmark a
line of credit that you can draw on as needed, process your credit card
receipts, rent you space or time on their computers, and a whole lot more.
Remember, banks charge fees for everything from checking accounts to
excessive deposits. The bank's other services are no exception. Make sure you
understand the details of outsourcing business operations to your bank.
At the same time, the very same banking services can also provide an
excellent negotiating opportunity for an alert ISP owner. That's right, both
interest rates and the terms of the funding you're seeking are negotiable
regardless of the size of your business.
While the lowest interest rates and least restrictive terms are naturally
reserved for the safest transactions and the biggest customers, any ISP that
utilizes or can be expected to eventually utilize a bank's other services,
possesses leverage that can be applied to lower interest rates on a small
business loan and avoid many of the restrictions that could accompany the
funding.
Finding funding online
The Internet not only
offers online banking and bank services, it also provides an opportunity for
every ISP owner to apply for the capital they require online. Better yet, the
Web also offers the luxury of putting your financing needs out onto the
Internet. Imagine having many banks, even "brick-and-mortar" banks bidding for
the privilege of loaning you the money your ISP operation needs!
Online financial services are not limited to banking and lending. They can be
a source of information about the many different types of financing available to
your business. Online resource could help you decide which type of financing is
right for your situation and even help you compare the "cost" of many financing
alternatives ? all online. A full-service bank that is online probably has more
technical expertise than the average small-town bank. An online bank may better
understand your ISP business and grasp its financing needs. More importantly,
only you can determine if an online bank can offer your ISP the funding and
services that it requires at this stage of your growth.
Bundling business needs
The route most ISP
owners are familiar with involves submitting a completed loan application and
submitting it to a faceless clerk at a neighborhood bank. Unfortunately, the ISP
business owner who dutifully completes a loan application is, at best, limiting
the available options.
At worst, the ISP operation will either secure needed funds at a cost that
can only be compared to as "paying retail." Or the application will be rejected
and it will be necessary to start the entire application process over again. Not
many small businesses have the time available to complete all required
documentation, schedule an interview with the bank manager, cross the "T's" and
dot the "I's," for bank, after bank, after bank.
Whether banking online or locally, today many experienced ISP owners ignore
the loan application altogether ? often ignoring banks, too ? while getting the
funding they need at a price that they can least afford.
The tool small businesses currently use to secure funding is known as a "loan
package."
The loan package takes many different forms and shapes and contains widely
varying amounts of information. Distilled to the lowest common denominator, the
standard loan package provides all of the information usually contained on a
typical loan application. Additionally, a packaged loan application presents
basic business data, plus any relevant information designed to influence,
reassure, and even educate the potential lender.
With a loan package in hand, the ISP owner can approach any banker with
confidence that his or her request will receive the attention that it deserves ?
even if the banker knows absolutely nothing about operating an Internet service.
Best of all, regardless of how exotic, unusual or risky, your business plan
is, you are not limited to making your request at one bank ? or even a number of
banks. Your packaged loan proposal is also portable ? it can be submitted
electronically.
The secret to securing business loans is to understand the type of financing
your business requires and who is best suited to provide that financing most
economically. By using a loan proposal, you help any potential lender understand
your business and its financing requirements. And remember, good things come in
small packages.
Securing a Small Business Loan by Mark E. Battersby
5 Stupid Things ISPs Do to Screw Up Their AUPs by Rachel Luxemburg
Management 101: Creating Structures by Jason Zigmont
Protect Your ISP With A Strong AUP by Christopher Knight
Self-Rental, a Tax Strategy by Mark E. Battersby
Tax-Saving Tax Strategies by Mark E. Battersby
Extremely Affordable Worker Magnets by Mark E. Battersby
Reward Yourself With Fringe Benefits by Mark E. Battersby
Turn Your ISPs Business Losses into Tax Benefits by Mark E. Battersby
|
