For Thomas Insights.
Many businesses and leaders see opportunities in difficult times. The number of businesses launched during recessions — GM, IBM, Microsoft, and more — prove that for the true visionary, opportunity is as great, or greater, in challenging times.
Many banks follow a more conservative model, though, so the financing, in its most traditional forms, required to take bold steps may be difficult to obtain. Therefore, it is important to broaden one’s perspective to consider all viable funding opportunities.
Here are a few steps you can take to obtain financing at any time, including challenging times.
7 Steps to Financing in Any Economic Condition
1. Understand Your Financial Position
To obtain financing, you must understand your business’s financial position thoroughly. You should know your business’s cash flow, profitability, debt, and equity. You should also be familiar with your credit score and any existing loans or lines of credit. This information will help you determine what financing options are available to you and how much you can realistically borrow.
2. Explore Government-Backed Loan Programs
The U.S. Small Business Administration (SBA) provides various loan programs that can help businesses access financing. These loans are backed by the government, which means that lenders may be more willing to provide financing to businesses that may not qualify for traditional bank loans.
