Starting or expanding a small business in New York City takes more than just a great idea. It requires financial preparation, market understanding, and a solid business plan. At Spring Bank, we know the importance of operations, organizations, and systems to keep your business organized. Not only does proper business planning set your vision, but it also contributes to your financial sustainability and ability to access capital when you need it. We spoke with team members Germarie Medina, Commercial Loan Underwriter, and Erica Rosero, Small Business & Nonprofit Loan Officer, to provide a few New York banking tips to help you get organized before you seek capital.
- Understand Your Financials Inside and Out
To make a case for a loan or line of credit, you need a comprehensive understanding of your financial history and future projections. Erica has previous experience working at the Small Business Development Center (SBDC) and emphasizes that being financially organized is a critical step. This includes having a clear record of tax returns, balance sheets, and cash flow statements, as well as understanding any past financial challenges and how you’ve overcome them.
“You need to be able to justify your line of credit request. It makes an impression of your character and commitment to your business. Even if your financials aren’t up to par, being able to explain a financial analysis allows us the opportunity to make a case for your request. We can explain to our advisors, ‘Listen, I know the financials are not ideal, but this person knows what they’re doing, and they know their business,” explains Germarie.
- Clearly Define Your Business Goals and Needs
Loan readiness isn’t just about the numbers. It’s about having a well-articulated business plan and being able to explain your goals in action steps. While a business description is helpful, the most important thing is to explain your projections, how you’ll use the funds, and what you aim to achieve. Taking the time to research your market, forecast your growth, and outline future steps shows lenders that you’ve invested time in preparing and that you have a realistic vision for your business. The stronger your grasp of your business’s financial history and future projections, the more convincing your loan application will be to our underwriting team.
“It’s about presenting us the information as best as you can so that we can trust you with borrowing our money,” shares Germarie.
- Know Your Industry and Your Competitors
A deep knowledge of your industry’s landscape and the competitive market is key. As a community bank in New York, we prioritize staying up-to-date on market conditions, and we encourage small business owners to do the same. Thorough market research signals to lenders that you’re prepared to operate strategically in your space. It’s also critical for setting realistic goals and aligning them with your funding needs.
“Who are your competitors? Are you launching a product next year? Are you looking to hire new staff? You need to know the bigger picture of your business goals and be realistic about your industry position and loan ask,” explains Erica.
- Seek Resources and Guidance Along the Way
We understand that running a small business requires wearing many hats. That’s why we’re here to help guide you to free resources for business planning, like SCORE’s templates and webinars through the SBDC and Small Business Administration (SBA). As one of just a handful of community banks in New York, we’re committed to helping small businesses succeed with affordable banking products like our high-yield savings account, and top business checking account for those ready to grow.
“We understand as a business owner of a small company, you are only one person doing the job. But doing the work to understand your business is part of the process, even if you don’t know how to make financial projections or calculations. It is up to you to do the work, but you don’t have to do it alone,” says Erica.
Loan readiness takes effort, but with the right preparation and support, it’s achievable. By following these tips, you’re setting yourself up for success. We’re here to be part of your journey, committed to supporting your business with a small business bank account tailored to your needs and programs that empower your growth.
Ready to take your business to the next level? Explore our lending options here.