The holidays are coming up: should I wait to apply for a business loan?
As a current or future business owner, the holidays can be a frustrating time to access capital. There are many factors applying and closing a business loan in a normal scenario so dealing with holidays can add to the equation.
Capital Access Center:
This really depends on your current situation. As an owner or prospective owner, you should ask these questions:
- Am I prepared with a full financial package to submit?
- If not, when can I realistically have one put together?
- Do I know exactly what my project costs will be?
- Do I have a handle on all sources and uses?
- Do I have completed Bids and Evaluations?
- Do I have time to answer questions and provide the necessary paperwork to the bank?
If you answered Yes to most of these questions, then you are probably in a good position to apply for a business loan.
Banks:
- Remember, Bankers have families as well and it is typical for them to take time off during the holidays.
- Even if your loan officer is not taking time off, approving officers, back-office staff and third-party vendors could be out of the office also creating delays.
- Bankers will want to see a full financial package especially at this time of the year because resources are scarce.
- End of the year goals. This can work both ways…. You might have a lender that has already achieved their loan goals for the year so your request might not be a priority. Not uncommon for a loan officer to sandbag for the next year. I have been guilty… yikes. On the other hand, you might have a lender that needs loans to make their year end loan production numbers so this could work in your favor. I have been here also… You will get a feel based on conversations with the banker on how motivated they are.
Happy Holidays!! If you have more questions, contact your Capital Access Center!
Vincent Haworth, Director- Capital Access Center – haworth@ksbdc.net
View more information at CapitalAccessCenter.com
