By the way, yes, I do laugh at this in retrospect. Not when I went through it, of course, but in retrospect, yes. I've mentioned before that I believe strongly that as long as you're willing to not give up, you'll succeed.
The fact from Part 10a: Getting financing from a bank involves lots of paperwork, so be prepared.
I provided some history about going to a bank when I had another company back in the late 1980s. This time I describe mixed expectations between myself and the banks.
This time I went through all the SBA paperwork, got their approval, got letters of approval, etc., from different NH state offices, letters of referral, letters of intent from clients, had our accountant put everything in order so that the bank would see our financial situation was improving over time, put together a business plan...
...and still got refused a loan. Why this time? Two reasons, both a little arcane (to me, anyway).
- Again, I wasn't asking for what the banks thought I'd need. Banks can't tell you how much to ask for when you're seeking a business loan. If they tell you how much to ask for and your business fails, they're liable. Therefore nobody at any of the banks I went to was willing to tell me, "Ask for this much money and we'll approve the loan." The bigger problem was that the banks couldn't figure out how much I would need. The reason the banks couldn't figure out how much I would need was, ...
- ...as several members of NH's SBDC and PTAC offices told me, I wasn't getting a loan for a "pink poodle parlor".
(more to follow...)
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