1. Weigh your options. Talking to your banker is a good place to start, but not the only way to get financing. Alternative lenders are becoming more popular and will often put together creative deals that banks will not touch.
2. U.S. Small Business Administration 504 loans and Ohio Regional 166 loans are a good alternative for business owners struggling to make a profit or in risky industries such as restaurants or hospitality. These loan programs require less money down initially and extend loan repayment over a longer period of time.
3. Research whether there are any local initiatives in your city that provide low-interest loans to business owners wishing to expand.
4. Dealing directly with banks or independent mortgage lenders is a much faster process than dealing with SBA 504 loans or the state of Ohio 166 loans, which can take up to 60 days to complete. Meanwhile, city managed economic initiatives can take up to four months to get rolling.
5. Lenders want to see that business owners can handle the loan payments. Assemble a two-year revenue projection before going out to look for financing.
6. Start looking for financing six months to a year before you expect to start any building or expansion project.
