We’ve facilitated thousands of commercial loans, have worked with hundreds of successful business owners and we’ve noticed a pattern. Most successful folks we work with like to move fast, they operate without pause and ignore distractions in relentless pursuit of the goal. Trepidation isn’t in their DNA and most subscribe to the famous Albert Einstein quote, “A person who never made a mistake never tried anything new.”
And we work with others that stall, contemplate decisions with their spouse, cat and dog and move at the pace of a wounded snail. We’re still able to process most of these scenarios, but unquestionably, these situations that have a higher fail rate.
Often, and no fault of our own, here are some of the reasons we don’t make the funded commercial loan finish line.
- “I’m going to wait for equipment prices to come down.”
What goes up, must come down and the market is much like a seesaw. Interest rates have increased recently while equipment prices are going down.
It’s possible that the cost of equipment might come down, but for certain – interest rates are increasing. Waiting can be expensive and keep in mind that there are two key factors in the purchase – the cost of item and interest rates.
- “I’m going to hold onto my money.”
It takes money to make money and there are several reasons to invest in your business. New equipment, technology and resources can:
- Increase speed and productivity
- Improve efficiency
- Better safety
- Help the business thrive
Also consider the tax implications and speak with your accountant about the benefits of purchasing equipment. The notion of another monthly payment might not sound like a good idea at first, but would you rather invest in your business or give that capital to the IRS?
- “The economy is slow, and I’ve changed my mind.”
Much like a blue moon, perfect business scenarios are rare. We’ve seen clients lose direct freight contracts because they waited. We understand it’s important to make smart and thorough decisions, but procrastination is a different story.
- “My credit is bad!”
It’s a credo around here, but bad credit is temporary and can be repaired with discipline and time. A low score doesn’t happen overnight – neither does a high score – this is a marathon not a sprint, but it can happen faster than most assume.
For those with bad credit – here is a quick start action plan:
- Know your credit – use a credit monitoring service such as Credit Karma
- Pay bills on time
- Own a home or land
- Establish an LLC or corporation and start your time in business clock
- Use personal accounts for personal expenses and commercial accounts for business expenses
- “I didn’t click with your representative, so I’m calling someone else!”
If this is the case, then this is likely the most valid reason to pause a deal – we apologize and take full ownership of this one. We have eight salespeople on our team, if your initial experience is unpleasant, then please call us and ask to speak with the owner – we’ll get it fixed.
- “I don’t have enough for the down payment.”
Business ownership is a performance-based accomplishment, not a privilege. Not to mention – trucking, construction and manufacturing are some of the most expensive startup businesses there are. Banks will require the borrower to have 15- to 20-percent of the loan amount in their account which means a lender will require at least $15,000 to get started on a $100,000 loan. Plan ahead and when your affairs are in order – move forward.
We pride ourselves on being consultants, not salespeople and above all else – we’re in the business of solving problems.
What are your short-term business goals? Long term business goals? Let’s have a conversation about what you want to do and we’ll help you get there.
Let’s get started!