Are You Ready? Banks - Especially Community Banks - Are Looking for Good Retailers as Customers

Those plans to grow, expand, update and upgrade that have been on hold for the last few years, due to lack of financing? They may once again be pursued!

Now is an opportune time to reach out to your banker to get the financing you need for your business.

"Data from the Federal Reserve show banks are more willing to lend and their customers are seeking more credit as both groups gain confidence in the economic outlook," according to Bloomberg News. "Easier access to low-cost financing means retailers can expand outlets and hire the staff to run them."

"Community banks participating in the Small Business Lending Fund (SBLF) have consistently increased small business lending over the past two years," said Deputy Secretary of the Treasury Neal Wolin. SBLF encourages lending to small businesses by providing capital to community banks on an incentive basis: the interest rate the banks pay is reduced as the bank increases its lending to small businesses.

Remember, it is not just retailers who have had to make adjustments in recent years to survive. So have the banks. They too are having to be far more competitive.

Even better, there are tools available to you that help to level the playing field when it comes to doing business with one of them. Here are a few to get you started:

1. First, remember that you are interviewing them!

You are looking for a lender you can work with, who respects you, and most of all, who deserves to have your business. Find someone who wants to earn it!   

2. Make a "performance based" short list of banks to interview. 

Don't limit yourself by geography. Your goal is finding a bank that understands your business. 

• Be sure to include one or more Community Banks. Go here to use the Community Bank Locator. Just enter your ZIP code, and immediately get contact info on the nearby community banks.
• Also, go here to see the Treasury Department's map and list of all Small Business Lending Fund participating banks. (That's the  incentive program described above.)   

3. Check their "grades" for Small Business lending!

Yep, banks are like any other business; see which ones make the grade! 

Go here to see the "banking grades" for Small Business lending of each bank you are considering. You can search by ZIP code, city and state, or bank name.      

4. Put together your loan proposal - and your cash flow projection.

The key: not only showing what you would do with the money you borrow, but having the cash flow plan to show when you can pay it back!

• Go here on The ROI site to see the checklist of what a Loan Proposal should include.
• Then, use the online 3-in-1 INTEGRATED Calculator  to do your own cash flow projections.