Monday, August 6, 2012

Looking for a Loan?

I am aware that obtaining a bank loan today can be rather difficult. But we read in the newspapers that banks are currently sitting on many dollars and they appear to enjoy counting them every day!

It has now become difficult for a DME/HME provider to get a loan from a bank. In their minds, many dealers may fail or reduce the size of their operation because of “Obama Care.” (I use the term “Obama Care” since that is what it is called on the TV or in the newspapers). The loan officers are hesitant and think it will be very detrimental to small business.

I have studied this and have also watched what has happened in Massachusetts. I now feel this presents a major opportunity for DME/HME providers.

“Obama Care” is far from perfect. It has many problems, but I believe they will be  corrected. Look back to when FDR established Social Security and note the many changes made over the years. Then think about LBJ and Medicare. This legislation is going through all types of alterations, but by and far, it has done much good.

So with the economy starting to return back slowly, but optimistically, the real entrepreneurs are featuring new OTC cash sales in their operations. Smart business people developing more over the counter cash sales opportunities! These DME/HME providers are all looking for new ones when they go to Medtrade this October.

But what we seem to be missing is co-operation from the banks. I wonder why? Having spoken to several loan officers, both at big and small banks, I want to tell this to you.

When you recognize that your direction must change with this new economy, then you will be taking a giant step in the right direction. That is what they like to hear.

You are going to after a large piece of the burgeoning new market. Your plan is to hire another employee or two! They will be out selling emergency and first aid supplies everywhere people gather or shop in your town. It’s the law!

It is important to keep your company name in front of the community. To  accomplish this you will need additional funds. Where should you find them? From your bank!  You sell medical supplies, the banks sell money. I spoke with a number of loan officers. What should you tell them?

Keep it simple and short. Ask for a sufficient amount of money. Prepare a good business plan showing exactly how the money will be used. Be sure you bring a current financial statement, prepared by your CPA. What the bank officer will  see is how your company has fared the past few years. They want to be satisfied that when they provide the requested funds there will be sufficient new income to meet your goals and repay the bank. There is a lot more, but this is usually how negotiations start. 

Make that first step and get your plans for the future launched. Come to Medtrade prepared to locate every new opportunity that is offered and will fit within your operation.

Let me know your thoughts on this topic!  I would love to hear from you!

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