Chasing Money When Times Are Tough
American Samoa Chamber of Commerce Vice-President Jason Betham offers banking advice:
1. Make sure your financial statements are up to date.
a. This is usually a part of your loan agreement anyway.
b. Having up to date financials will also allow the bank to act quickly if
you need additional financing or need to restructure the debt you
already have because of reduced cash flow.
2. Plan ahead! Don’t wait until you can’t afford your loan payments and fall delinquent before you talk to your bank. Banks are more willing to help those who are proactive than those who show up requiring “emergency” financing or restructuring.
3. Talk to your Banker and be HONEST about your situation. Your banker can’t help you come up with the best solution for your business without full disclosure about your operations. Your banker can review your financials and identify trends for you and provide helpful advice.
4. File your taxes accurately! The bank will base your ability to repay a loan on official documents such as tax returns. If you understate your income to reduce your tax bill you may not show enough income to pay a loan.
Jason Marist Betham, Sr. isn't just another pretty face on the Board of Directors of the Chamber of Commerce. He's the Credit Manager of the Development Bank of American Samoa, so he knows of what he speaks. For questions, please contact Jason at DBAS 633-4031. Or comment below.
In the course of daily business, we sometimes get so caught up in the "how" that we forget about the "why." Have you ever felt that you were slightly cursed when it comes to finances? Please, read Dr. Joe Vitale's insightful article. 7 Ways To Attract More Money - Secretary