Are You Ready to Borrow

Ask yourself these questions — and understand your business — before you apply.

The reality is that every business must have cash to start the business, maintain operations and grow. Before you borrow, make sure that you:

• Have a well-written, and well thought out business plan (especially if you are a start-up business). There are many resources, like the local SBDCs and SCORE, available to help you prepare this plan.
• Know how much you need to borrow.
• Make sure the loan structure matches the purpose of the loan.
• Don’t let the term of the loan exceed the life of the assets.

If you approach your lender with a carefully planned request along with the documentation to support it, you and your business will have a better chance of getting an affirmative answer. Most lenders will underwrite your request by considering the following basic factors: collateral to secure your loan, your capacity to repay the loan, your credit, and your character. All lenders review these same factors; however, lenders may weigh each factor differently.

Ask Yourself These Questions

You will need to be able to answer the following questions before being considered for a loan from Bridgeway Capital.

• Do you have a written business plan?
• Have you attended any business classes or workshops on how to run a business?
• Does your business earn enough money to pay its expenses and you with enough left to repay a loan? Do you have a written cash flow analysis to verify your ability to repay?
• Do you know exactly how you will spend every dollar of your loan request? This is called a Sources and Uses statement.
• Do you keep financial records for your business? Do you review and understand your statement of income and expenses each month?
• Have you borrowed and repaid loans in the past? Have you paid your bills and credit cards when they were due? A good credit history is a key part of being able to borrow money for a business.
• Do you have a backup plan to pay us if your sales dropped or you did not make enough income ? Paying on time is important.

Do you need a question clarified, or are you unsure about your answers? Visit our Resource Library for links to resources that may help. Or give us a call at 412.201.2450. We are happy to help.

If you have thorough answers to the above questions and want to apply for a loan, go to the Applications section, choose the correct application, fill it out completely and legibly, and return by fax to 412.201.2451 or mail to: Attn: Office Manager, Bridgeway Capital, 707 Grant St., Suite 1920, Pittsburgh, PA 15219. For a loan of $50,000 or less, you will fill out the online loan application.