Thinking of getting a business loan one day? Keep these 3 things in mind: creditworthiness, cash flow, and payment history.
Always carry a long-term plan
As much as it sounds bold, decisive, and adventurous to wing things sometimes, building a business is not something you’d like to get into without a plan. If you’re serious about what you’d like to accomplish, you’ll ensure to make necessary plans to stay the course. So, always carry a plan for the long-term. This means you should check on your creditworthiness; lenders care about this because they want to make sure they’ll get their money back with interest, and not just waste it on you.
Start saving money. Believe it or not, it takes money to produce money. Things like business licenses, establishing a dba or incorporating right off the gate, don’t come free. You’ll have to pay for those.
Lastly, build a reputation for paying off your debt and/or making payments as promised. We live in a data-driven world now. Things are less likely to be decided based on likeability, rather based on data performance.
So, if you keep these 3 things in check, you will likely be a good candidate for business line of credit when the time comes to start your business.