Business First Consulting, Inc.

For many business owners, securing a business loan is essential for growth and stability. However, one of the biggest obstacles they face is procrastination. Often top performers in other areas, many owners delay essential financial actions, believing their talent and experience alone will suffice. This mindset leads to handling everything solo, often avoiding necessary delegation. Instead of asking productive questions like, "What steps can I take today to change my company's financial course?", they dwell on, "Why am I in this situation?" This approach leads to a cycle of fear, frustration, and inaction, often trapping them in temporary solutions like cash advances instead of sustainable bank financing.

"When it comes to obtaining financing for their business, I find that the number one issue business owners face is procrastination. In most every other area of their business they are at the top of their game. But in this specific issue, many owners assume their talent and experience will suffice and translates into this arena, leading them to handle everything on their own and avoid delegating the necessary tasks and responsibilities. Instead of asking proactive questions like 'What can I do differently today to change the course of my companies financial issue?', they get stuck asking 'How come I am in this situation?' or 'Why is this happening?' This mindset traps them in a cycle of fear, guilt, frustration, and embarrassment, preventing them from addressing the looming financial crises that they are in or ahead of them. They fall back on quick options and rely on short-term solutions and assumed abilities, hoping projected future profits and new business will solve their problems. When I offer solutions requiring extra effort and time, they often delay taking action. They listen to others offering cash advances, in first, second, third, or even fourth positions to resolve the short-term crisis. The person offering this solution has likely never struggled with making payroll, being late on taxes, dealing with canceled business, or facing an industry downturn.

Therefore, when making a decision to delegate a solution for long-term resolution, negotiate your way through your situation, and hire an experienced hands-on expert, it's crucial to ask four questions of anyone offering quick solutions: How long have you been doing this? Have you ever run a small business? What was it, and why are you not running it now? To truly change course, take action, delegate wisely, and shift your focus from 'How' and 'Why' to 'What can I do?' If they haven't walked in your shoes, then don't listen to their solution." - Todd Myers

To break free from this cycle and focus on securing a business loan, it's crucial to make informed, strategic decisions. When seeking expert assistance, ask yourself four essential questions:

1. How experienced is the consultant in securing business loans?
2. Have they personally run a small business?
3. What was the business, and why aren't they running it now?
4. Have they faced similar challenges?

Shifting focus from “How” and “Why” to "What actionable steps can I take?" is a critical part of securing a business loan effectively. Here's a guide to help you move from reliance on Merchant Cash Advances (MCAs) to securing sustainable bank financing.

Overcoming Procrastination When Securing a Business Loan

If transitioning from MCAs to bank financing feels daunting, these actionable steps can help build momentum and reduce delays in securing a business loan.

Educate Yourself on the Benefits

• Understand the Advantages: Bank financing offers lower interest rates, longer terms, and government regulation, unlike MCAs, which lack such protections and can quickly lead to loss of control over finances if you default.
• Review Success Stories: Seeing examples of other business owners successfully transitioning to bank loans can help boost confidence and provide a roadmap.

 

Simplify the Loan Process

• Divide Tasks: Break down the process into smaller steps with clear deadlines. Start with foundational tasks like improving personal credit, getting taxes and financials in order, and using your business account exclusively for business transactions.
• Create Checklists: Use a step-by-step checklist for tasks such as conducting UCC filings and credit checks. Request removal of old or inaccurate information from credit reporting agencies to help prevent fraud and improve credit.

 

Get Support and Hire a Consultant

• Personalized Guidance: Enlist a business consultant or assign tasks to a capable team member to guide you through securing a business loan.
• Resource Materials: Use templates, guides, and resources that simplify each step of the process.

 

Set Clear Deadlines

• Develop a Timeline: Create a timeline with specific deadlines to establish a sense of urgency and keep you accountable.
• Regular Check-ins: Schedule check-ins to track progress and overcome any obstacles.

 

Utilize Accountability

• Accountability Partners: Pair with a trusted advisor or peer who can provide feedback and keep you motivated.
• Regular Progress Updates: Reporting your progress creates responsibility and helps maintain your focus.

 

Incentivize Action

• Reward Timely Completion: Consider rewards for meeting deadlines, like discounts on services or access to resources.
• Highlight the Costs of Procrastination: Explain the consequences of relying on MCAs, including higher costs and long-term financial strain.

 

Address Psychological Barriers

• Overcome Fear: Deal with any fears or misconceptions about securing a business loan.
• Celebrate Small Wins: Recognize milestones to build confidence and reinforce progress.

 

Leverage Technology

• Automate Routine Tasks: Streamline financial data collection and document submission to make the process more efficient.
• Use Digital Tools: Utilize digital platforms that simplify the loan application, making it user-friendly.

 

Envision the Benefits

• Plan for the Future: Imagine the growth and stability a business loan can bring.
• Set Long-term Goals: Define goals bank financing can help achieve, creating motivation to follow through.

 

By implementing these strategies, you can take the necessary steps to secure a business loan, resulting in a more sustainable financial future for your business. Prioritizing bank financing over short-term solutions will provide stability, growth potential, and peace of mind as you navigate your business’s financial landscape.