Local Business Funding Spotlight: Preparing Mike & Jen's Cocoa Mix for a Small Business Line of Credit
Entrepreneurs are tenacious. They’re problem solvers, and when they have an idea for a business, they cannot and will not rest until they’ve seen it through. While seasoned entrepreneurs with several successful ventures on their hands may be able to access a small business line of credit from a traditional banking partner from the start, first-time business owners often must navigate a more challenging road to accessing financing.
Startups are essential to a thriving economy, but from a financing perspective, they’re risky. With a reliable revenue stream in place, many startups do not make enough to cover the monthly debt service associated with a loan or small business line of credit from a traditional bank. It’s a bit of a catch-22 – especially in the food/food processing industry with a non-traditional sales cycle. Entrepreneurs can’t access capital until they can show revenue, but they need to purchase and prepare inventory in advance and won’t see revenue until weeks or months later.