Dear NJ Small Business Advisor,
Q: I want to open a hair salon in town and need a loan of $50,000 to set up operations. What steps do I need to take before approaching a lender?
A: Approximately 8,000 small business loan applications are rejected every business day across the nation. There are many factors that can result in a turndown notice.
Luis De La Hoz, first vice president, regional director community lending New Jersey at Valley Bank, offers the following advice to entrepreneurs seeking business financing for the first time:
De La Hoz says that it is important to maintain good communications with your banker, adding that banks exist to help businesses expand. He also mentions that entrepreneurs may want to seek alternative funding sources, such as US Small Business Administration loans (of which Valley is a program participant); county and municipal grants; and Community Development Financial Institution funding for low-income communities.
About the Author:
Bruce Freeman launched and successfully ran his own high-tech public relations company, Proline Communications, after leaving a management position at a major technology publication firm. For 20 years, he served as Professor of Marketing at the Stillman School of Business at Seton Hall University. He is co-author of the start-up guide, “Birthing the Elephant” (Penguin Random House).
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