Issue link: http://www.insightdigital.biz/i/425993
w w w . i n s i g h t o n b u s i n e s s . c o m D e c e m b e r 2 0 14 • I NSIGH T | 27 I N S I G H T O N B A N K I N G FOR STARTUPS B y M a r y B e t h M a t z e k E ntrepreneurs looking to secure a business loan would be well served to follow the Boy Scout motto of always being prepared. Proper preparation before approaching a financial institution asking for cash is the best thing entrepreneurs can do to boost their chances for success, says Steve Barry, assistant vice president-commercial banking for First National Bank of the Fox Valley. "Having a business plan is key. It doesn't need to be 200 pages, but it needs to be solid and spell out projections of income as well as expenses," he says. "We want to make sure there's been research done that this is a solid idea." Being well organized also is essential, says Maria Young, senior business consultant with Prospera Credit Union. "When entrepreneurs come in and have papers that are a mess, it can get hard. It's also important to have the basics down for your business and some sort of plan, even if it's a basic one you put together using an online template," she says. Young will refer clients who come in without business plans to SCORE, E-Hub and Urban Hope in Green Bay or Fox Valley Technical College's Venture Center. "We have a lot of great local resources available," she says. While the TV show "Shark Tank" is popular and celebrates entrepreneurship, Barry says it doesn't send the right message about how "We also incorporate creative financing options and programs that offer additional protection or benefits to the borrower," he says. "Our view on a financing package places the long- term protection of the client above that of the bank." Kok says it's also important for entrepreneurs to have their own financial house in order before meeting with a banker. "e best indicator of how a company will handle its business affairs is how well the individual business owner has managed his or her personal credit in the past." Tim Taffe, senior vice president of commercial banking for rivent Federal Credit Union, Finding funding Financial institutions share what it takes for entrepreneurs to get loans businesses get funding. "You just can't stand in front of us and make a pitch without any supporting information," he says. "We need to see you've done your research and that this business has a good chance of succeeding." Beyond a solid, well-organized business plan, lenders also look at the background of the person asking for the loan, Barry says. "Do they have experience in this industry? What has been their career so far?" Nate Kok, vice president of Hometown Bank in Fond du Lac, works with entrepreneurs on finding alternative financing sources for their new business. [continued] »