Hidden Pitfalls of Growing Your Business:
3 Things You Need to Watch Out For
Our team of commercial lenders are well-versed in the common issues and oversights that occur as a business prepares for a season of growth. Here are 3 things to watch out for:
1. Not Having Reliable Financial Documents
Ensuring that you have a correct, up-to-date, Balance Sheet and Profit & Loss Statement is of utmost importance. These should be prepared monthly, but no less than quarterly. Do you understand these documents and what they are really telling you? If not, we are here to help! Never hesitate to ask us. It will save you a lot of hassle in the long run.
2. Not Being Able to Sustain Your Growth
Do you have the working capital available to start and sustain growth? This can be the biggest problem. Expanding buildings, staff, and resources have instant expenses and the increase in revenue, which takes time to build, usually lags behind those expenses. Having the capital to pay for expansion expenses until the increase in revenue catches up ensures that you don’t put your current operations and profits at risk.
3. Not Having a Trustworthy Banker
Unfortunately, there are some bankers that just want the loan. They will lend money without consulting with you to make sure you understand the issues involved with growth. We take pride in being a community-based financial institution and understand that the loan has to be good for the bank as well as good for the customer. We will never lend to you without understanding the ins and outs of your situation and offering expert advice along the way. We want to grow our relationship with you as much as we want to see your business grow!