According to the President and Leader of Valley National Bank’s community lending team, the volume of applications they have received from New Jersey small businesses that need funding has increased significantly in the last several years. For lenders, this is a good sign that small business owners are becoming more confident in the economy. For borrowers, this means that that lenders are opening up their doors to small businesses. If you own a New Jersey small business, and you’re in need of funding, heading to your local bank to apply for financing may not be a bad idea. However, you’ll need a business plan before they’ll consider lending to you.
Why a Business Plan is Needed to Get Funding for Your New Jersey Small Business
First things first, writing a business plan is necessary whether or not your need funding for your New Jersey small business. A business plan will not only help you get funding, but it will serve as a guide for operating and growing your company. If you plan on going to your local bank to apply for funding for your New Jersey small business, they will definitely want to see a detailed business plan with a marketing plan and at least three years of financial projections. They may also request additional financial documentation such as the last two years of your business and personal tax returns.
It’s important to find out what you’ll need to show a lender, before you apply. Proper preparation (i.e. writing your business plan and gathering the required supporting documentation to submit with the application) will make you look good to a lender and increase your chances for approval. The New Jersey Small Business Development Corporation offers business plan writing workshops that can help you get prepared. Click here to find out when the next workshop is taking place.
Find Out if You’ll Need a Business Plan to Apply for Funding for Your New Jersey Small Business
LenCred is a New Jersey small business and a leader in helping business owners understand what they need to do to qualify for funding. If you need to get funding for your New Jersey small business, but you don’t know what you need to do to prepare, contact LenCred. LenCred advisors may be able to tell you if you need a business plan to apply for funding for your New Jersey small business or if you can explore financing options that don’t require you to have one.