Top & bottom line revenue + cash flow Gross revenue is great but net profitability gets taken into high consideration for conventional funding. If you’re looking for a low interest long term SBA or bank loan then you’re going to want to show increases in net profitability on a year over year basis. Keeping the balances in your business bank account high is important as well. If you have average daily balance that is low and a low number of deposits per months then loan underwriters will put your application in a higher risk tier. So keep those balances high and deposit as much money you can into your business bank account as possible! Increase your net profitability on a year over year basis. Will you have to pay more taxes? Yes. Will your company be easier to sell? Yes. Will your company have access to cheaper funding options? Yes. The positives far outweigh the negatives when it comes to showing net profitability. Stop operating at a loss on your tax returns every year simply to avoid paying Uncle Sam. You are stepping over dollars to pick up pennies! #TheyDontTeachYouThisInSchool

1. Use of Funds 2. Credit History 3. Time in Business 4. Industry Type 5. Cashflow & Profitability We will be thoroughly diving into all 5 of these 🔑 things underwriters look at To be continued…

💯 Your personal credit still gets taken into consideration as a borrower when you’re getting a loan, even if you have established business credit and it’s not a PG. There are manufacturers and funders that won't mind that you have low personal credit if you do have high business credit, but they will still look at it. 🧠 If you have a business with good monthly cash flow or an asset with equity (equipment, real estate, receivable's) then you can still get funding with bad personal credit. 🙂‍↕️ Without either of those you will typically need at least a 650 or higher FICO score to get a real business loan. 👉🏼 Keeping your business and personal credit cards at a low utilization (<35%), using them every month, and paying your bills on time will help proactively build + maintain your credit. 🤖 Lastly, when it comes to start up funding, you’ll need a good credit score since there isn’t much else to base the initial loan off of due to lack of historical financials. #TheyDontTeachYouThisInSchool