Oakland County Business Center (MI-SBTDC) -- Financing/Grants

Prior to approaching bankers, alternative lenders or investors we strongly recommend you write a business plan. As a matter of fact if you are looking for serious money, the business plan is a bank/investor requirement.

Not only do you need to convince your financing sources that you can pay back the loan but you need to convince yourself that you can earn a livelihood from your business. Your business plan should clearly articulate the answers to the following questions; how much money do I need? What do I need it for? When do I need it? How will I pay it back? 

Pre-Application Phase

Prior to applying for a loan the following steps are recommended:

• Review your credit reports and those of anyone with 20 percent or more ownership in the business. Review these reports to determine if the information being reported is accurate. If any derogatory information is reported, take steps to correct or explain that information. In Michigan every individual is entitled to one free credit report per year from each of the three credit reporting bureaus. Also pay for and obtain your most recent credit scores. The cost is under $10 and each of the three major credit reporting bureaus issue their own.
• Be prepared to come up with up to thirty (30) percent of the money you need to start and run your business. The lending institution can be looked upon to provide the remaining seventy (70) percent.
• Develop a business plan with 3 to 5 years of monthly cash flow projections. The Business Plan should have a strong Executive Summary which includes the sources and uses of funds.
• Talk to your Business Consultant about the types of lenders you should approach based on your situation.
• Understand the proper way to approach these lenders and what types of questions to ask.
• Prepare a personal financial statement (for anyone with 20 percent or more ownership). Quite a few lenders will provide you with a form to complete.
• Gather the last three years' tax returns for the business.
• Gather the last two years' of individual tax returns for the business owners.
• Start talking to lenders but don't complete any applications until you have decided on the bank of your choice. This way you don't have a lot of inquiries on your credit report. Increased inquiries are not only negative but end up reducing your overall credit score.

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Loan Preparation Assistance

Business owners require loans for different purposes ranging from working capital to fixed asset loans. In some cases the business owner may actually need a mixed use loan which would involve working capital and fixed assets. Our consultants at the Business Center will advise business owners of their options and refer them accordingly.

The role of our business consultants relating to accessing capital include:

Assisting with the development of cash flow projections, business plans, financial forecasts, loan
   proposals, and lender presentations
Educating clients on financial ratios and lending criteria used by financial institutions
Connecting the buisness owner with appropriate funding sources
Post-funding consulting to maximize success and promote an ongoing strong relationship with the bank
   or other funding source

 

What Type of Financing is Best for Your Company? 

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Working Capital Loans -- Banks/Alternative Lenders

Looking for a line of credit or even capital to pay for basic business operations? Depending on your individual situation, there are a variety of financing options that your business counselor will be willing to discuss with you.

Sign-up for a no charge consultation
SBA 7A Loan
Credit Union financing
Oakland County Microloan
Alternative financing for start-ups 

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Fixed Asset Loans -- Oakland County Business Finance Corporation

Want to purchase major equipment, a piece of property or building for your business? The Oakland County Business Finance Corporation (OCBFC) is expert at the U.S. Small Business Administration's (SBA) 504 Loan process. Designed for acquiring fixed assets, it provides very attractive terms and conditions for the small business community.

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Loan Preparation Workshops

The Oakland County Business Center hosts a couple of workshops addressing the loan process. 

The Small Business Loan Workshop is for traditional startups or new ventures. Experts from the United States Small Business Administration, the Service Corps of Retired Executives and the banking industry present details on what is needed to secure a loan for your business.

Team SBA Financing Roundtable is targeted at existing companies or business owners looking to purchase existing businesses.

Funding sources for Technology/Emerging Sector companies are usually in the form of seed capital, private investor or Venture Capital.

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Grants

With the possible exception of the programs listed under Grants.gov, there are NO grants for the general startup and operating costs of a mainstream for-profit business.

Small Business Innovation Research Grants 

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