How The World Of Business Financing Has Changed Over The Last Two Years And What You Must Know!

The finance world has changed, perhaps more dramatically in the last 1-2 years than any time in our modern history.

This has affected the results to be expected in the area of business credit and what results are likely.

The length of time you had to be in business has grown longer. It used to be from day one you couple apply for a business line of credit, then 3-6 months, then 6-9 months and now many times you may need to be in business for 1-2 years. This of course is in direct relation to the amount of credit you are asking for!

For example, if your company was in business for over 2 years, you’d get $50,000. If you were at one year, you could get $30,000. They’d do $15,000 or so for startups under 6 months.

But those all have gone back up 2 years solid, and sometimes 3. Again, if you make it past that magic 2-year mark and you’re still in business, then they’re saying, “Okay, let’s take a look at what you’ve got.”

The banks have also gotten away from a stated income. I shouldn’t even call it stated income, because it’s not. It’s a no documentation application. And now, most of those applications are “And by the way, let me see your last 2 years of taxes on your personal and business.”

The Role of Profitability in Bank Financing!
If You’re Paying Taxes, You’re Making Money.
If You’re Making Money, You can Borrow Money!

That ties into that profitability piece. You got to make sure your accountant pays taxes. But if you’re paying taxes, you’re making money. If you’re making money, you can borrow money.

Banks do not like to hear about hope; “Hey, if this guy would just give me a chance at this deal, it’d work.” But you’ve got to understand that the banks are in the business of loaning money to profitable businesses so they can expand and make even more money. Your job is to make your business profitable, or at least appear profitable on your financial statements, to the point that a lender’s going to say, “Okay, you have enough extra income to pay me back when I give you this money.”

For more information on financing accounts, read on! Access Merchant Accounts.

About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to or call FBC at 1-888-313-6333 or 702-977-5246.