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Getting Your First LoanMonday 05/14/2012
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Getting Your First Loan

 

So many business owners feel that in order to grow they need to get a business loan, whether it’s from a bank, family, friends, credit union, or drawing against their own personal financial assets.  Unfortunately so many people fail to see the work that goes into not only determining the value of the loan for what they’re trying to obtain, but also what is actually will mean for their business.

 

1.         What do you actually need the loan for?

 

So many people have such lofty ideas that if they had additional monies for marketing and hiring sales people, customers will come knocking down your door.  That only works in the movies.  First off, you should be your best salesperson, and always remember that no one will care about your company more than you do.  So take a step back, and re-think that thought process, to actually determine if this is what you need.  If you’re a bad sales person or don’t like says altogether, it may be an option you need to explore then.  However throwing a lot of money at someone will not likely increase your sales but just pay someone a hefty salary.

 

2.         Where do you plan to get the money from?

 

Family and friends is such a tricky situation, especially if there is no written agreement.  From a financial standpoint, if you agree to make interest payments to these people, you need it in writing in order to demonstrate that it’s a legitimate expense in that aspect.  Just “agreeing” to pay x amount of interest will not fly in the face of a review of your financials from a bank or IRS auditor, so everything must be documented.  Also at the end of the year, you need to make sure you have a 1099-INT for yourself, your benefactor, and the IRS to make sure everything is above board and there are no questions.

 

3.         What is going to be your collateral?

 

Your good looks and charm doesn’t get you a business loan these days from any type of financial institution.  That went out the door with the recession.  Today not only do you need an adequate business plan, but you also need to make sure that you have assets that you can use against the loan for it to be considered a worthwhile investment.  If you are looking at buying equipment in order to help expand that business, then this is where you can use it as collateral, however it still belongs to your lender until you pay back the loan.  Therefore until such a time happens, don’t even think about using it for additional collateral for other lenders or selling it.

 

4.         Where’s the paperwork?

 

Never accept investments, loans, etc. from anyone without paperwork because there’s always strings attached in one way or another.  So many people fail to see the need to make sure everything is in writing, because they “trust” that the person(s).  Life doesn’t work that way, and could you potentially face losing that money to a family member or friend, or even losing your business to them if everything wasn’t spelled out.  Again protect yourself by thinking everything through before going that next step.

 

 

 

About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.

 

Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.

Previously broadcast from:
SKL @ BlogTalkRadio.com 11/07/2011 - 01/03/2014
CBS Radio's Talk 650 10/12/2009 - 07/01/2011
CNN 650 Radio News 11/08/2006 - 10/08/2009
KSEV AM700 04/04/2005 - 10/30/2006

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