Getting finances to start up a business

SPRINGFIELD, Mass. (Mass Appeal) - Last Tuesday, we helped you get started turning your dreams into a reality and this week, in part two of our series on starting a business, we're focusing on finances with Raymond Milano, the Branch Manager for Western Mass of the U.S . Small Business Administration .

When looking to finance your business you should be aware of your options and the expectations of potential lenders or investors.

Credit/Character: It’s important to know your credit score when you begin the search for financing. Lenders will want to see that you’re responsible and have a good track record in paying your obligations.

Collateral: Do you have assets to secure the loan in case you’re unable to repay? Examples of collateral include; real estate, equipment, inventory, automobiles and life insurance.

Contribution/Capital: Do have money to invest in the business? Lenders will want to see a financial commitment on the part of the borrower.

Repayment Ability: Do the numbers make sense?  Will you have enough cash flow to keep the business running and repay the loan?

Management Expertise: Does the borrower and/or their team have experience in performing the work and running a business?


Massachusetts Small Business Development Center Network
Western Regional Office
Scibelli Enterprise Center
One Federal Street, Building 101R
Springfield, MA

(413) 737 - 6712
www.msbdc.org/ wmass