Business Plan Writer for Companies Raising Capital

3 Big Mistakes Bankers Say Heating and Air Conditioning Business Entrepreneurs Make When Seeking a Commercial Loan

It is a difficult task for anyone to receive funding from a bank. Small business owners often struggle with the process of receiving a loan. In a recent survey done by business plan writer, Cheree Warrick, she discovered the three biggest mistakes HVAC Installation companies make when presenting their plan (and commercial loan application) for capital.

1) HVAC company owners don’t understand the bank’s risk concerns or how to position their companies for approval. There are three parts to a successful bank application- good credit, collateral, and cash flow. Good credit is determined by your FICO score. Banks will hold collateral for business debts and cash flow is shown through a strong business plan. Many HVAC experts forget that banks are businesses, too. They are in the business of making loans that will be repaid each and every month. A bank’s greatest concern is that the entrepreneur will default on his loan. The entrepreneur’s job when presenting a bank loan plan package is to show how you’ll alleviate the bank’s risks within your funding package.
2) HVAC experts don’t know how to clearly articulate their vision, client attraction plan, and how their team will take advantage of the market opportunity. If you are unable to attract paying customers to your business, you will never survive. If your employees are unable to serve your customers and turn them into loyal, raving fans, you will earn a bad reputation on social media and throughout social circles. Within your business plan, you MUST show how you will not only attract but also retain patrons.
3) Entrepreneurs don’t know their numbers. After reviewing your Executive Summary, the commercial lender will review your financial forecast and past financial performance. Then they’ll ask questions. Being able to clearly articulate your calculations improves your chances of getting approved.

Some bankers will say that the business plan is unimportant in the commercial loan process. Untrue! I know a company that received 9 NO’s from commercial lenders. He changed his business plan and received 4 immediate YES’s. Why? Because his business plan showed he took care of the three mistakes shown above.

Your first instinct may be to copy a business plan template from the internet and simply fill in the blanks. This method may be easier in the short run; however, it won’t give the desired result. Saving a few hours of work will eventually cost businesses millions of dollars in approved loans.

Remember- bankers see thousands of loan applications annually. Whether you’re seeking a business loan for working capital or business expansion, you must show a clear understanding of your numbers, your client attraction plan, and your repayment abilities.

Cheree Warrick is a professional business plan writer who helps companies throughout the mid-Atlantic (Virginia, Maryland, Delaware, Pennsylvania, Washington D.C., New Jersey, and New York) obtain business loans for their growing small businesses. Whether an entrepreneur needs a working capital loan, commercial loan, equipment loan, or SBA guaranteed loan, Cheree is able to assist.