Get organized before seeking business loans

For those interested in starting a business, financing is among the most important factors. Bank employees recognize the need for small-business financing, which is why they're willing to work with entrepreneurs in acquiring loans for their ventures.

"These loans help (entrepreneurs) because it gives them the ability to fulfill their dreams," said Bruce Ford, business banking manager for City National Bank's Nevada group. "We provide the financing, and we try to have conversations with them about their plans."

Ford advises that entrepreneurs establish a business plan and utilize resources such as SCORE and the Small Business Association for tips on getting their ventures off the ground. These groups, he said, can often make the difference in success for start-ups.

"Business plans force these entrepreneurs to think through everything they're trying to do," Ford said. "These nonprofit groups are great, especially for people who have a good idea but may be lacking personal resources."

Paul Stowell, City National Bank spokesman, said people often overestimate the amount of money or credit they need to finance certain aspects of their business. That's where financial advisers such as John Vanderploeg, Nevada State Bank business center manager, step in.

"We normally have people (overestimate) because they haven't done their homework," Vanderploeg said. "I usually tell them to do an Internet search on their business and ask questions like, 'What's your venue? Are there competitors in the area?' "

Because of an increased interest in startups and small businesses, Vanderploeg said banks provide more resources to help entrepreneurs than before. Nevada State Bank has a small-business website, nevadasmallbusiness.com, dedicated to providing resources for entrepreneurs. The website offers advice from the planning stages to webinars on aspects of successfully operating a small business.

Vanderploeg said that in addition to steering entrepreneurs toward the website, he offers advice for those coming into the bank seeking loans.

"Banks are going to be looking for some specific items," Vanderploeg said. "Put somewhere in writing a summary of what you're going to be doing and bios of people who will be working with you. Banks will look at your finances, seeing if you're currently employed and this will be a side (business) or if you'll venture off, and this business will be your sole source of income."

Ford said that when entrepreneurs apply for a loan, financial history is among the determining factors. For those establishing a first-time business, personal finance is vital to their loan applications.

"If they're just starting, their prior experience in their personal financial statements is very important," Ford said. "If they're established, then we have some history to review, such as cash returns, for their business and personal finances."

Vanderploeg said other factors for entrepreneurs to consider are bookkeeping, handling cash flow and customer service.

Contact Paradise/Downtown View reporter Lisa Carter at lcarter@viewnews.com or 383-4686.