Start Building Your Business Relationship - Money Tip Tuesday

Starting and running a small business is an exciting but often intimidating venture. If you’re gearing up to start your own small business, it’s important to make sure you have the right business professionals on your team, especially when it comes to your money. 

Links: 

• Resources and tools from the SBA
• Learn more about Triangle's Business banking products and services
• Follow our Facebook, Instagram and Twitter pages!
• Learn more about Triangle Credit Union

Transcript: 

Welcome to Money Tip Tuesday from the Making Money Personal podcast 

Launching your new business can be quite a challenge. Determining your product offer, doing market research, and building a brand are all important hurdles to jump. And of course, there’s the funding part. Determining whether you’ll bankroll it yourself or take out a loan is an important question you’ll face when starting a business.  

Fortunately, having the right business team on your side will make a huge difference when it comes to funding.  

If you’re a new small business owner, you may not know where to begin when it comes to getting a loan for your business.  

There are many financial institutions to choose from but what should you consider when choosing a financial institution for your business?  

Look for an institution that has a relationship with the Small Business Administration or the SBA. This reflects the credibility of the financial institution and opens doors to all kinds of additional resources and lending tools they’ll be able to assist with.  

Also, when it comes to business funding, look especially for affordable rates and low fees, both of which credit unions have a strong reputation of offering.  

The next thing to look for in building your business relationship is the convenience and responsiveness of your lender.  

Every business is unique. For some business owners, this may be as simple as easy access to a retail branch, but for others it may be more important to secure that trusted relationship with a financial partner and loan officer.   

The right financial partner for you will offer the best products and services for your business while also being approachable and responsive. Smaller financial institutions, like Triangle Credit Union, are perfect for business owners who prefer a local, full-service commercial loan department to take care of all their needs.   

Another thing to look for when building your business relationship is to have a dedicated loan officer that will be right by your side while your business grows.  

Loan officers will take the time to get to know you and your business goals while also providing suggestions for products and services that will provide the most benefit for your business. 

They also bring a large amount of business experience and can connect you with other professionals that can provide business services beyond financial needs like business exit planning, accounting, and legal services.  

If you’re excited to launch your new venture and are ready to move forward building your business relationship here are a few simple things you can do to prepare for that first business meeting. 

If you’re looking for financial backing, the first step is to contact the Commercial Loan Department at Triangle Credit Union or your chosen financial institution. You’ll be connected with a Commercial Loan Officer who will conduct a discovery interview to understand what your needs are.   

During this interview, you will be asked about the history of your business, the current financial trends, the current ownership structure, and what the financial needs are for your company.   

Depending on the loan products that you’re looking for, you will typically need to provide at least 2 years of federal business taxes and personal taxes as well as a set of recent financial statements.   

If your business is brand new, there will not be any financial history to examine. Therefore, the lending decision will rely heavily on personal collateral, personal credit history, a strong business plan, and how much cash you are willing to put into your business (ideally 10% of the loan you’re looking for).  

A strong business plan will tell the story of your business. It should include the vision of your company and explain why you believe you will be successful.   

A thorough business plan should also include a competitive analysis, pricing breakdown, staffing needs, and long-term planning that includes economic downshifts and upswings. This allows the Commercial Lending team to understand how you would be able to pay back your loan if something were to happen.   

If you don’t have your business plan in writing just yet, our Commerical Lending department at Triangle Credit Union will provide you with a blank form to fill out with all this information.  

If you have a vision for your business, working with a financial institution like Triangle Credit Union can help you on your journey to success. In addition to commercial loans, we also offer business cash management, payroll, and merchant services.   

If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!