Issue link: http://cp.revolio.com/i/142672
finance your vision By William J. Lynott Credit is the oil that lubricates the machinery of most businesses and professional practices. Whether it's a loan to buy inventory or supplies, support renovation or expansion, a capital purchase, or as a means to meet operating expenses, almost every business depends on credit at some point. At times of economic upheaval, a credit crunch makes it tougher than ever for small business owners and professional practitioners to swing a loan. "I'm not so sure that's a bad thing," says Eileen Laird, massage practitioner and author of 101 Things Every New Massage Therapist Should Know. "It's so easy to get in over your head with credit that great caution should be used before taking out a business loan." Still, there are legitimate and often urgent reasons why an MT may need to apply for a business loan. For those in the know, there are enough options available to make the task a little easier. Money may be tight, but business loans are being made every day to those who know how to ask. If you're planning to look for a business loan, here are some choices, along with hints on how to greatly improve your chances of coming away with the money you need. Banks The first place that many therapists turn to when they need a business loan is their local bank. That's why it's essential to build a solid business relationship with your bank well before you need to ask them for money. Allowing your bank to become familiar with your practice and how it's progressing sets the stage for the time when you need to ask for a loan. For relatively new businesses, most experts like the time-honored system for establishing good credit. "Take out a relatively small loan, even when you don't need it—say $4,000 or $5,000," says certified public accountant Tom Normoyle of Huntingdon Valley, Pennsylvania. "Put that money in the bank where it will draw a little interest. Then, a few months later, pay off the loan in full, plus interest. Now the bank knows you, and you have a solid credit history." Even after establishing a relationship, some credit seekers meet with frustration when the bank turns down their loan application. Most bankers agree that this is usually because the applicant has failed to come prepared with the information a lender needs to make a positive decision.