| Compliance, what is it, why is it so vitally | | | | not in Compliance and I discover this quickly when |
| important to your business, and how does it | | | | I speak with a business owner on the phone. In |
| relate to Business Credit? Merriam-Webster's | | | | point of fact lenders do not have to share what |
| dictionary defines compliance as: conformity in | | | | their lending criteria consists of or how they |
| fulfilling official requirements. Think about that for | | | | employ compliance formulas when determining |
| a moment. Official Requirements. From time to | | | | what businesses get approved and what |
| time as the owner of a small business you have | | | | businesses do not. |
| the need to borrow capital. Its uses could be | | | | Knowing what those Compliance requirements are |
| many. For example; additional inventory, new | | | | and knowing that your business has met those |
| space, newer equipment, computers, a new | | | | requirements prior to applying for Business Credit |
| phone system, internet marketing or just maybe | | | | is three fourths the battle. You wouldn't take your |
| for an out and out emergency. The business could | | | | SAT's without having some clue as to what the |
| be relatively new or in existence for several | | | | questions would be right? Yet on a daily basis |
| years. It has been showing a profit so you feel | | | | business owners do just that. They do not have |
| quite confident in approaching a lender and | | | | a clue to the degree of information requested, |
| requesting a business line of credit. | | | | collected, and verified about their business nor |
| The process couldn't be easier right? You feel | | | | how it's used for the sole purpose of making |
| confident and filled with expectation because | | | | credit decisions about their business and because |
| whatever you needed the capital for can now be | | | | they do not know they put their business in total |
| taken care of. In some cases you may have | | | | jeopardy. So if your business were to go through |
| your business checking account with this lender | | | | a Compliance Check today would it pass or would |
| and the lender is familiar with your business. A | | | | it become just another statistic like so many |
| stressful and heavy burden has just been lifted | | | | others in 2008, where approximately 1.15m small |
| off your shoulders. At last you can look forward | | | | business were forced to close their doors forever |
| to a good night's sleep. When you finally receive | | | | because they could not obtain the capital they so |
| your letter in the mail you open it only to read | | | | desperately needed? Put the future of your |
| "We regret to inform you that your request for | | | | business in the hands of a Business Credit |
| credit has been denied." There is usually no | | | | specialist who is familiar with "Official |
| explanation other than your business did not meet | | | | Requirements" Compliances and knows precisely |
| Business Credit lending criteria. The cold hard truth | | | | how to make sure your business passes |
| is that most businesses do not meet anywhere | | | | Compliance in flying colors so you can obtain the |
| near the number of Compliances that are | | | | kind of Business Credit your business needs to |
| required. Why, because they do not know what is | | | | flourish. |
| required. I can tell you this; most businesses are | | | | |