![\"Leslie](\"http:\/\/www.financenewmexico.org\/userfiles\/Leslie-Hoffman.jpg\")
Leslie Hoffman, Director of Lending, ACCION New Mexico<\/p><\/div>\n
Sheep ranchers Jerry and Lyn Brown of La Plata, N.M., were looking for resources to help take their small business to the next level. \u00a0The sheep herd represented more than a livelihood for the Browns; it was the one remaining asset the family turned to as a lifeline after Jerry was hurt on a construction job and then nearly killed in a random shooting.\u00a0The Brown\u2019s finances had suffered because of medical bills, but their commitment to their sheep ranch was clear.<\/p>\n
The Browns turned to ACCI\u00d3N New Mexico, a non-profit lender, for a $2,500 loan. \u00a0In spite of their financial challenges, the Browns were able to obtain financing because they scored well on the critical elements of a loan application.<\/p>\n
ACCI\u00d3N is a nontraditional lender that increases access to business credit, makes loans, and provides training which enable entrepreneurs to realize their dreams and be catalysts for positive economic and social change.\u00a0Our lending considerations go beyond numbers.\u00a0We seek hardworking and pioneering small business owners and emerging entrepreneurs. \u00a0We support their passion to succeed, learn, and make the right financial and business choices.
\n<\/p>\n
There are several critical elements of a loan application that we evaluate as part of the loan process.\u00a0They include:<\/p>\n
- \n
- Character: This is among the most important considerations in any ACCI\u00d3N loan application. Our organizational values reflect the character we seek in our clients \u2013 passion, pioneering spirit, integrity, commitment to excellence and a history of accountability.<\/span><\/li>\n
- Cash flow: What is the flow of income and expenses for the business and the household every month? \u00a0Is there enough money to cover a monthly loan payment? Will the loan increase the income of the business? The ACCI\u00d3N team helps determine ways to make the most of what\u2019s coming in and going out.<\/span><\/li>\n
- Credit history: A credit report provides insight into previous relationships with creditors. This history is one of the important tools in a lender\u2019s toolbox to understand financial health. The ACCI\u00d3N team analyzes, along with clients, the most important elements of the credit report, including credit score. Like a home or a savings account, a credit score is an asset. We want clients to protect and build on this asset.<\/span><\/li>\n
- Collateral: A willingness to pledge items of value to secure a loan until it is repaid is an important indicator of client commitment. On smaller loans, clients have used items such as equipment or livestock.<\/span><\/li>\n<\/ul>\n
Along with ACCI\u00d3N staff members, clients like the Browns evaluate these critical elements of their loan application to assess their needs and financial position.\u00a0If these elements are not in place today, we can help clients build a path to get there tomorrow. <\/p>\n
Our aim is to improve people\u2019s financial health. An ACCI\u00d3N New Mexico loan can be used for a variety of business purposes that promise to do so, including the purchase or upgrade of equipment, the purchase of inventory or a business location, or marketing.<\/p>\n
As a nonprofit community development organization, we offer small business loans from $200 to $150,000 at competitive rates to people who may have limited access to traditional forms of business credit. \u00a0We recognize that people \u2013 like the Browns \u2013 may have suffered from unexpected financial challenges.\u00a0But if the critical elements of the loan application are positive, we can help businesses get back on their feet and grow, much as we have done for more than 2,000 small businesses through loans and support services.<\/p>\n
Learn more about ACCION\u00a0New Mexico<\/span><\/strong><\/a>.<\/p>\n
Download 10_Critical Elements of Getting a Small Business Loan PDF<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
A description of the most important elements of a loan application and what it takes to obtain a business loan. Continue reading
- Cash flow: What is the flow of income and expenses for the business and the household every month? \u00a0Is there enough money to cover a monthly loan payment? Will the loan increase the income of the business? The ACCI\u00d3N team helps determine ways to make the most of what\u2019s coming in and going out.<\/span><\/li>\n