Stunned thousands of small business owners call the integrity of the company Dun & Bradstreet Each week later, they refused loans. Jeff Stibel, business credit reporting company's CEO, has a message to them: Do not blame the banks.
Rather, he said, to find out how you contribute to such a refusal, and began working to improve the company's credit rating, so the next time, the answer is "yes."
"There is so much you can do, should do, before you need a loan," he said.
Dun & Bradstreet credit compile reports on small business credit, banks can buy to help make their lending decisions. In a recent conversation, the Associated Press, Stibel comes to bank loans to small businesses remains in the doldrums. Loans rose slightly in April, according to Thomson Reuters / PayNet small business lending index, declined in the first three months of this year. Stibel agree that banks can be difficult for small businesses to obtain loans. But he believes that the owners bear some responsibility, they refused.
Many small business owners to obtain loans are wrong, he said. They are less likely to apply to banks for approval. When they apply, they have yet to determine their company's financial situation and credit rating is solid. They do not have time to train a person would sympathize with a banker relationship.
Stibel know that business owners do not help themselves, because they call Dun & Bradstreet credit, the bank rejected loan applications, and tell them to find out what is in their business credit report. The file is similar to consumer reporting agencies Experian and Equifax company compiled personal credit report. They include information such as the company's payment history, how much debt has been carrying the number of loan applications.
"We're talking about one week more than 20,000 companies and a huge percentage of them do not even know they have a business credit file, they think they are a personal credit file," Stibel said.
Sometimes business owners do not look at their credit report until they sat together in the bank branch loan officer, Stibel said. For bankers, this is a red flag.
"They would say, a business owner," I tried to believe that I can trust you to pay your bills, I can entrust money to you, you will be a good corporate steward back to me - but if you do not know your credit situation looks like, then how on earth I can lend you money? '"He said.
Owners can get their copy of the file, including Dun & Bradstreet integrity, Experian and Equifax company reporting company. They should also learn from their personal credit report, bankers consider when making lending decisions.
Another obstacle: Many enterprise application process is not smart, Stibel said. Owners believe that they can walk into a bank, fill out an application and anxious to get loans. These days, this is a good way to get turned down.
"They think any credit before they should do what they do, only to start a business," Stibel said. This includes writing a formal business plan, explain how you would spend the money you want to borrow.
Smartest owner "of banks, requirements, begging to work with them, rather than hectic to try and find the right bank," he said.
Many owners do not realize that not all banks are the same. Banks have different ideas and strategies related loans. For example, some make more real estate and other assets as collateral, loans tend to the company's good cash flow.
"You know how Joe's pizza should get a loan from Bank of America, but should be a masseur Jim Janes from the well should be a dry-cleaning machine from a community bank?" The answer is for business owners to do their homework in advance, research lenders. They should have a few banks information exchange, banking on the Internet to read.
"I do not know what their standards are before you walk in the door is a disaster," Stibel said.
Disaster beyond denial. Many homeowners continue to purchase a loan are not aware that every access to their business and personal credit report inquiries and exclusion.
Credit report, it can be a problem when a company does not need a loan. Some large retailers would like to see the manufacturers, their products, they buy credit report. They believe that a good credit rating companies, are more likely to run well, but not what they cut corners on the sale of goods, Stibel said.
He recalled that heard from a small manufacturer of consumer products, there is a deal with a large national retail chain. That is, it has processed until retailers took a look at the company's credit report and decided that there was not enough information. The retailer does not feel secure enough to do business with the company. Owner immediately Stibel.
"From the first word of his mouth was' hello ', that is' Help!" Stibel said, "they told him," We do not care if your product is good or bad, we will not put it in our shop. "
Even if the economy continues to slow recovery, small business loans remains weak. Many companies say they do not want or need a loan, because they do not know their income will be strong or weak, they do not want to take on more debt after paying their loans fell, the economic recession.
Stibel said stagnant loan is also due to the fact that banks and small businesses are in the cross-purposes. The banks say they are trying to make more loans. Bank of America (Bank of America) has hired 1,000 banks for small businesses to provide services. Wells Fargo (Wells Fargo) women small business owners to increase their marketing and promotion, to help improve how much money to lend them. Citigroup said in March that it had exceeded its 2012 small business loans from $ $ 160 million goal. But the banks are also concerned about small business loans the risks involved, so they new lending requirements. The company hopes to use as little as possible the requirements of a loan, Stibel said.
"We see everyone's motivation, motivation and interaction between this disconnect, which is I think the real bottleneck is that it does not want or lack of effort," Stibel said.
Banks are more likely to lend to a business owner, they knew and trusted, rather than a complete stranger, he said. This is why the Bank of America (Bank of America) in the country more small business bankers, so that it can better understand the reasons for small business customers.
But a business owner have much relationship. Stibel advice: "You should have, if not quarterly meeting your loan officer, at least two times a year, even if it's nothing more will come out to eat lunch and say how great your business is you do not want to have your first times when they meet, and what is wrong. "
 



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