Alternative funding can be a bridge, not a destination. The businesses that move on to lower-cost bank financing usually build the same habits. Here's where to start.
Eight habits banks look for
- Keep clean, current books. Close your books every month and have an accountant prepare year-end financial statements.
- Separate business and personal money. Run every business dollar through business accounts.
- File and pay taxes on time. Late filings and tax liens are among the first things a bank checks.
- Build steady deposits and healthy balances. Avoid overdrafts and keep a cushion in your account.
- Pay down stacked obligations. Fewer daily withdrawals means stronger cash flow on paper and in practice.
- Watch your credit. Check your business and personal credit reports and fix errors early.
- Build a track record. Banks typically want two or more years of financial statements and tax returns.
- Start a bank relationship early. Open accounts and get to know a business banker before you need a loan.
How RPI helps you get there
Our founders used merchant cash advances and receivables financing when no bank would lend to them. They reinvested every dollar, built a track record, and grew into equipment loans and lines of credit.
We want the same path for you. Clients who complete an advance in good standing get the documentation fee waived on renewal, may qualify for a larger advance when revenue supports it, get first access to RPI's future equipment, secured financing and credit-line products, and can be referred to bank partners when they're ready.
Every business is different; past results don't guarantee future outcomes.