The Bankable Blueprint: A Strategic Guide to Building Financially Secure and Fundable Businesses
The Bankable Blueprint" by Lynette T. Stevenson
A Strategic Guide to Building Financially Secure and Fundable Businesses
Overview
"The Bankable Blueprint" is a comprehensive guide designed to help entrepreneurs and business owners build financial credibility, secure funding, and establish a strong business credit profile. Authored by Lynette T. Stevenson, a financial expert and founder of DALS Credit Solutions Co., the book provides actionable strategies for improving business bankability, leveraging credit reports, and mastering funding applications.
Key Takeaways
1. The Importance of Bankability
Bankability refers to a business's ability to secure funding, establish vendor relationships, and maintain financial stability.
A strong credit profile increases access to capital, lowers borrowing costs, and strengthens supplier relationships.
2. Understanding Business Credit: Dun & Bradstreet (D&B) vs. Experian
Dun & Bradstreet (D&B):
D-U-N-S Number: A unique identifier used by suppliers and vendors.
Paydex Score: Measures payment performance (0-100; 80+ is favorable).
Focuses on trade credit, making it essential for supplier and vendor relationships.
Experian Business:
Intelliscore Plus: Evaluates creditworthiness (0-100; 76+ is low risk).
Blends personal and business credit for a holistic financial picture.
Preferred by banks and financial institutions for loans and credit lines.
3. How to Build a Strong Business Credit Profile
Register Your Business: Form an LLC or corporation and obtain an EIN.
Open a Business Bank Account: Avoid mixing personal and business finances.
Establish Trade Credit: Work with vendors who report payment history.
Monitor Credit Reports: Regularly update and dispute any inaccuracies.
Use Business Credit Wisely: Maintain low credit utilization and timely payments.
4. Leveraging the Community Reinvestment Act (CRA) for Funding
Banks are required to support businesses in low-income communities through CRA lending.
Entrepreneurs can target CRA-active banks to improve funding opportunities.
Strategies for CRA-friendly businesses:
Highlight community impact (job creation, economic growth).
Submit funding applications when banks are undergoing CRA evaluations.
5. Mastering the Funding Request ("The Art of the Ask")
Avoid vague requests (e.g., “I need working capital”).
Be specific about the loan purpose (e.g., “We need $50,000 to purchase inventory for peak season”).
Connect funding to business growth (e.g., “This investment will boost revenue by 25%”).
Address repayment ability (e.g., “Our cash flow allows for structured monthly repayments”).
6. Structuring Your Business for Growth
Develop a Business Plan: Essential for attracting investors and lenders.
Financial Statements Matter:
Income Statement: Tracks profitability.
Balance Sheet: Assesses financial position.
Cash Flow Statement: Ensures liquidity.
Use Key Financial Ratios to analyze business performance and financial health.
7. Pricing Strategies for Profitability
Service-Based Businesses: Factor in costs like labor, marketing, and software.
Product-Based Businesses: Account for overhead, materials, and profit margins.
The Bankable Blueprint" by Lynette T. Stevenson
A Strategic Guide to Building Financially Secure and Fundable Businesses
Overview
"The Bankable Blueprint" is a comprehensive guide designed to help entrepreneurs and business owners build financial credibility, secure funding, and establish a strong business credit profile. Authored by Lynette T. Stevenson, a financial expert and founder of DALS Credit Solutions Co., the book provides actionable strategies for improving business bankability, leveraging credit reports, and mastering funding applications.
Key Takeaways
1. The Importance of Bankability
Bankability refers to a business's ability to secure funding, establish vendor relationships, and maintain financial stability.
A strong credit profile increases access to capital, lowers borrowing costs, and strengthens supplier relationships.
2. Understanding Business Credit: Dun & Bradstreet (D&B) vs. Experian
Dun & Bradstreet (D&B):
D-U-N-S Number: A unique identifier used by suppliers and vendors.
Paydex Score: Measures payment performance (0-100; 80+ is favorable).
Focuses on trade credit, making it essential for supplier and vendor relationships.
Experian Business:
Intelliscore Plus: Evaluates creditworthiness (0-100; 76+ is low risk).
Blends personal and business credit for a holistic financial picture.
Preferred by banks and financial institutions for loans and credit lines.
3. How to Build a Strong Business Credit Profile
Register Your Business: Form an LLC or corporation and obtain an EIN.
Open a Business Bank Account: Avoid mixing personal and business finances.
Establish Trade Credit: Work with vendors who report payment history.
Monitor Credit Reports: Regularly update and dispute any inaccuracies.
Use Business Credit Wisely: Maintain low credit utilization and timely payments.
4. Leveraging the Community Reinvestment Act (CRA) for Funding
Banks are required to support businesses in low-income communities through CRA lending.
Entrepreneurs can target CRA-active banks to improve funding opportunities.
Strategies for CRA-friendly businesses:
Highlight community impact (job creation, economic growth).
Submit funding applications when banks are undergoing CRA evaluations.
5. Mastering the Funding Request ("The Art of the Ask")
Avoid vague requests (e.g., “I need working capital”).
Be specific about the loan purpose (e.g., “We need $50,000 to purchase inventory for peak season”).
Connect funding to business growth (e.g., “This investment will boost revenue by 25%”).
Address repayment ability (e.g., “Our cash flow allows for structured monthly repayments”).
6. Structuring Your Business for Growth
Develop a Business Plan: Essential for attracting investors and lenders.
Financial Statements Matter:
Income Statement: Tracks profitability.
Balance Sheet: Assesses financial position.
Cash Flow Statement: Ensures liquidity.
Use Key Financial Ratios to analyze business performance and financial health.
7. Pricing Strategies for Profitability
Service-Based Businesses: Factor in costs like labor, marketing, and software.
Product-Based Businesses: Account for overhead, materials, and profit margins.
The Bankable Blueprint" by Lynette T. Stevenson
A Strategic Guide to Building Financially Secure and Fundable Businesses
Overview
"The Bankable Blueprint" is a comprehensive guide designed to help entrepreneurs and business owners build financial credibility, secure funding, and establish a strong business credit profile. Authored by Lynette T. Stevenson, a financial expert and founder of DALS Credit Solutions Co., the book provides actionable strategies for improving business bankability, leveraging credit reports, and mastering funding applications.
Key Takeaways
1. The Importance of Bankability
Bankability refers to a business's ability to secure funding, establish vendor relationships, and maintain financial stability.
A strong credit profile increases access to capital, lowers borrowing costs, and strengthens supplier relationships.
2. Understanding Business Credit: Dun & Bradstreet (D&B) vs. Experian
Dun & Bradstreet (D&B):
D-U-N-S Number: A unique identifier used by suppliers and vendors.
Paydex Score: Measures payment performance (0-100; 80+ is favorable).
Focuses on trade credit, making it essential for supplier and vendor relationships.
Experian Business:
Intelliscore Plus: Evaluates creditworthiness (0-100; 76+ is low risk).
Blends personal and business credit for a holistic financial picture.
Preferred by banks and financial institutions for loans and credit lines.
3. How to Build a Strong Business Credit Profile
Register Your Business: Form an LLC or corporation and obtain an EIN.
Open a Business Bank Account: Avoid mixing personal and business finances.
Establish Trade Credit: Work with vendors who report payment history.
Monitor Credit Reports: Regularly update and dispute any inaccuracies.
Use Business Credit Wisely: Maintain low credit utilization and timely payments.
4. Leveraging the Community Reinvestment Act (CRA) for Funding
Banks are required to support businesses in low-income communities through CRA lending.
Entrepreneurs can target CRA-active banks to improve funding opportunities.
Strategies for CRA-friendly businesses:
Highlight community impact (job creation, economic growth).
Submit funding applications when banks are undergoing CRA evaluations.
5. Mastering the Funding Request ("The Art of the Ask")
Avoid vague requests (e.g., “I need working capital”).
Be specific about the loan purpose (e.g., “We need $50,000 to purchase inventory for peak season”).
Connect funding to business growth (e.g., “This investment will boost revenue by 25%”).
Address repayment ability (e.g., “Our cash flow allows for structured monthly repayments”).
6. Structuring Your Business for Growth
Develop a Business Plan: Essential for attracting investors and lenders.
Financial Statements Matter:
Income Statement: Tracks profitability.
Balance Sheet: Assesses financial position.
Cash Flow Statement: Ensures liquidity.
Use Key Financial Ratios to analyze business performance and financial health.
7. Pricing Strategies for Profitability
Service-Based Businesses: Factor in costs like labor, marketing, and software.
Product-Based Businesses: Account for overhead, materials, and profit margins.