5 tips from an expert
Laurie Donovan, senior VP and business banking manager at Wells Fargo in New Mexico, shares these tips to help women with the financial challenges that come with owning their own business.
- Building credit is important - a good credit rating is just as important in your business as it is when you are trying to buy a home or purchase an automobile. Make sure you pay all bills on time and check your credit score periodically.
- Separate business from personal accounts - don't mix personal accounts with business accounts. Keeping them separate will not only show a better cash flow for your company but also present a clear picture of your business when it comes time to seek funding.
- Get a grip on your cash flow - know what your revenue and expenses are at all times. You want to always be on solid ground if you ever expect a banker to loan you money.
- Shop around for loans - conventional lending is not your only option. Laurie also recommends a government-guaranteed loan offered by the SBA called the 504 loan and the 7(a) loan. These loans are also easier to qualify for funding.
- Look for banks who loan to women - check around for a lending institution that is "female-friendly" and has a reputation of lending to women-owned businesses. Laurie recommends Wells Fargo, a top SBA lender, as well as other microfinance institutions such as Accion New Mexico or the Loan Fund.
To read more, visit www.bizjournals.com/albuquerque/news/2015/03/23/banker-shares-5-tips-for-female-entrepreneurs-who.html?r=full&page=2