544: Why Banks Won't Lend Money To Your Construction Business

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode 544, And It's About Why Banks Won't Lend Money To Your Construction Business</strong></span></h1> <p><span data-preserver-spaces="true">Getting approved for a business loan or line of credit is more complicated than qualifying for a personal loan. Small construction business owners must be adequately prepared to meet with a lender to present their business in the best possible light and ready for the money they need.</span></p> <p><span data-preserver-spaces="true">Think of all the times:</span></p> <ul> <li><span data-preserver-spaces="true">You loaned money to a friend or relative</span></li> <li><span data-preserver-spaces="true">Provided labor and materials for somebody's home or business without a deposit check</span></li> <li><span data-preserver-spaces="true">Did change order work that you never got paid for doing and never will</span></li> <li><span data-preserver-spaces="true">Gave a subcontractor/employee an advance on their paycheck, and you never got paid back</span></li> </ul> <p><span data-preserver-spaces="true">Multiply that by 100,000, and you will understand why banks seem so tight-fisted about loaning money.</span></p> <div> <p><span data-preserver-spaces="true">Banks stay in business by loaning money and earning interest. They work hard to find people, companies, and contractors with reasonable credit risks they can lend money to and get paid back promptly, with all of the interest due to them. Do your best to avoid raising any of these red flags.</span></p> <p><span data-preserver-spaces="true">#1 Your Profit & Loss and Balance Sheet Reports do not conform to financial industry standards</span></p> <p><span data-preserver-spaces="true">#2 The financials tell the banker your bookkeeper doesn't understand Construction Accounting</span></p> <p><span data-preserver-spaces="true">#3 The preparer's signature on the annual tax returns is not from a qualified tax specialist</span></p> <p><span data-preserve