Launching a small business is a journey full of dreams, goals, and at times, unique challenges. For many entrepreneurs, securing capital to fund their new business or even expand their already thriving business, can be a significant obstacle. For those ready to turn their dreams into realistic goals, Business Impact NW is proud to offer support and guidance through the Loan Readiness Center (LRC).“Traditional lenders usually don’t have a coaching program or technical assistance that the LRC provides”, states Christine Buckley, Director of the Loan Readiness Program, Business Impact NW. Through the Loan Readiness Program, wraparound services are provided, offering a unique opportunity to serve entrepreneurs more directly, and increasing the likelihood of loan approval. By offering assistance and support, Business Impact NW is able to serve entrepreneurs more effectively.
Personalized Help Customized to Business Needs
The Loan Readiness Center (LRC) provides free, tailored assistance to businesses that are just starting out or ready to expand, in order to help them prepare to acquire capital. Whether through traditional lending providers such as local banks or credit unions, through programs such as the Small Business Association (SBA), or non-traditional options like crowdfunding, the LRC helps small businesses find the right course of action. In addition, the LRC helps with navigating resources, understanding documents, and updating business plans, all keys to long-term success.
The LRC offers one-on-one coaching to businesses that need support with financial management and acquiring funding. With a dedicated team, including certified coaches, assistance with money management, credit building, and walking through loan application processes are all part of the expert guidance that the LRC offers. From refining business strategy and managing finances effectively to understanding accounting and bookkeeping processes, the LRC helps to empower entrepreneurs with the tools and knowledge to succeed on their business journey.
Starting the Journey
Small business and entrepreneur clients may come to the LRC through a variety of options, whether finding the program themselves, referral from the lending department, or through outside partners . With wraparound services, if a small business is not quite loan ready, they will receive referrals for resources by the Lending Department, through partner banks and credit unions, or it may be through self-interest and assessment via website. Regardless of referral source, the LRC is here to help may the trek to success easier.
“Every time I call, even if it’s just for a quick question, or if it’s for something much bigger like helping with accounting, a person always answers. You never get a computer or an answering service, and having that personal touch, that support, really makes the difference.”
Upon outreach, clients are assigned an advisor or coach, and an initial meeting is scheduled. During this meeting, the coaches will introduce themselves, explain the program, and gather information about the business and client. Depending on what stage a business owner is in and what the individual goals are, a plan will be developed, comprising the next steps. Business Impact NW is proud to be an ally to entrepreneurs, focusing on the full support and sustainability of each business. Because of this outlook, coaches are happy to design a personalized plan or refer to additional resources. Finding the best way to serve the needs of clients’ business goals, is top priority.
Getting Loan Ready and Boosting Financial Skills
Partnering with the Loan Readiness Center to get loan ready is only the initial step of a comprehensive financial journey. The LRC does more than help entrepreneurs prepare and qualify for loans. Their one-on-one coaching support covers the entire process, from in-depth review of the documents, to filling out applications, and eventual approval. Along with covering the loan process, the coaches ensure clients understand the documents they sign and timelines. By encouraging clients to ask questions and having open communication, the LRC ensures a better understanding for all clients. Beyond loan readiness training, the LRC also offers a range of programs to boost financial literacy and financial management skills.
Coaches assist clients by providing a deeper understanding of their books, including offering assistance with successful accounting practices. The LRC also offers an opportunity for a certified bookkeeper to give their professional advice. The coaches additionally provide valuable credit counseling to help build and maintain a strong credit history, improving the odds of qualifying for a loan. The Loan Readiness Center is more than just a financial support program focused on loan approval; they are committed to assisting clients with a full understanding of financial literacy to succeed in their long-term goals.
Gaining A Deeper Understanding of the Lending Process Post Covid-19
Having broader knowledge of how the lending process works is imperative for small businesses seeking to acquire capital through loans or grants. During Covid-19, specific programs became available due to the hardships of operating a business in a pandemic. These were often easier and quicker for a small business to secure funding. Some of these programs may no longer exist, making the lending process lengthier and more in-depth. The lending process typically involves these stages: loan origination, underwriting, and finally approval. Loan origination starts with the initial application, after the borrower has decided to apply at their chosen institution. Underwriters assess loans in more detail, going over the borrower’s credit worthiness and their business plan. Finally, if all is in good standing, the loan is ready for approval.
Lending Approval Timelines
Every business should know about approval timelines for loans. While timelines can vary for loan approval, currently, they tend to be a bit longer. Some loans are ready for quicker approval. Other approvals may take longer for a variety of reasons like more thorough evaluation of the borrower, the type of lender, and the type of loan. Clients can prepare for this wait by having all required documentation available and filled out properly and completely, maintaining open communication with lenders, and continuing to stay on top of their financial management. The Loan Readiness Center remains dedicated to supporting businesses during this time, and through every step of the process.
Christine Buckley says, “Business owners may feel like those funds are still available or that it should be an easier process like when they applied and got approved and got money quicker. Unfortunately, they don’t really understand from the point of view of a lender or an investor, that the process has slowed down, and to be prepared for that.” Through the LRC, clients benefit from valuable guidance, resources, and assistance to help them prepare for all steps of the lending process, so that their business can thrive. With the continued partnership of the LRC to small businesses and entrepreneurs, small business will continue to secure the funding and assistance they need to start, grow, and expand.
Looking for more information on loan readiness and preparation? Click here.
To find out more about our lending department and the process, click here.
About the author
Emma Seymour is a Communications and Public Relations professional specializing in storytelling, relationship building, and content development. A military spouse and former small business owner, she advocates for veterans, transitioning service members, and their spouses, and has delivered keynote speeches on workforce development, military programs, and childhood trauma.