As a global community, the Covid pandemic has changed our lives in a fundamental way. Life choices had to be re-evaluated, daily plans changed, record number of fur babies were adopted from shelters, and some people found the love of air fryers.
Sadly, some family members and loved ones were lost to the virus, as were record number of jobs. A few years into the pandemic, and subsequent recovery, companies have begun hiring staff again. People continue to take a second look at the available job options, their personal work experience, and reflect on the life they want to live each day. As a result, we have entered a new period referred to as “The Great Resignation.”
The Great Resignation refers to workers who either decide to quit their current jobs or not apply for a new job but start a small business instead. If this describes you, congratulations and we wish you the best! Running your own business can be empowering, fun, and rewarding. It can also be scary and expensive but don’t let that hold you back from building the business of your dreams.
Many new business owners realize they need a business loan for production costs, purchasing inventory, or even securing a storefront or warehouse when starting up. Your banker can help you determine the amount of loan you need, your debt ratio, and if you qualify. There are multiple types of business loans, programs and lenders available to small business owners – don’t be afraid to ask questions and research options!
Regardless of the type of loan you choose, you will need some basic information and paperwork. Your banker and you may have an existing relationship and he may know your personal and professional history – as well as if you are a good credit risk. Underwriters for the bank typically do not. It is the underwriters’ job to assess your business, your likelihood of success, and ability to repay the debt. Generally speaking, the underwriting process is the most difficult part of getting any type of loan – it is their job to make a decision with the bank’s best interest in mind.
Therefore, it is vital to go to the underwriting process with your business’ best foot forward. Present them with a document that details your business, your goals, your experience – everything you know about your business and your closest competitors. Show the underwriters you’ve done your homework and show them how you plan to bring your vision to reality. This document is called a Business Plan.