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Understanding Small Business Loans with Mark Ritter, CEO of Member Business Financial Services
When is the right time to get a small business loan in your entrepreneurship journey? Founder and CEO of Member Business Financial Services & Nu Direction Lending, Mark Ritter, joins Traci to discuss small business loans and what type of bank to look for when applying for a small business loan. Mark explains how underfunding can jeopardize a business as well as the emotional decisions that need to be made throughout an entrepreneur’s journey. Mark encourages people to start their business as a side hustle, make some mistakes, and get clear about the direction their company is going before going all in. Tune in to hear the incredible tips Mark has for small business owners!
IN THIS EPISODE:
- [4:50] What got Mark into the small business lending industry?
- [7:43] When should small business owners start thinking about lines of credit and building bridges for cash flow?
- [11:34] How should a small business manage their finances in the early years?
- [13:01] Is underfunding one of the major reasons for businesses not making it past the first couple years?
- [17:25] What is Mark’s outlook on people starting a business as a side hustle versus jumping right in.
- [21:34] How can you keep the love of your business going while realizing your role will shift as the business grows?
- [23:07] How has Mark seen businesses transform as they grow?
- [25:40] What are some of the biggest mistakes that Mark has seen when businesses are trying to secure financing?
- [28:27] What is the difference between a bank and a credit union?
- [31:04] How do emotional decisions impact financial decisions?
- [33:50] What is Mark’s best advice for partnering with a credit union locally to you?
KEY TAKEAWAYS:
- [20:52] If you don’t have foundational basics and the kindergarten-level-concepts of doing everything right, treat people nicely, make yourself happy, make your clients happy, and focus on those kindergarten level concepts, everything else just falls apart.
- [23:25] Many people start their business on one path and then grow in or shift in a different direction, and that’s ok. You can change your vision and your direction, but you must allow yourself to grow and not be held back by your original vision.
- [26:00] There are so many different banks and credit unions out there that offer different support. Make sure that who you get financed through specializes in small business support and that you are their ideal customer, or it can be a death spiral for your business. Find a bank that needs you just as much as you need them.
BIO:
Mark was the founder of Members 1st FCU’s credit union business lending program that grew to be one of the top ten in the nation in number of loans and balances outstanding for federal credit unions. In addition, Mark developed a participation program that grew to one of the top buyers and sellers of credit union business loans in the eastern United States. He has done extensive work with branch retail staff, business lending operational and sales staff, and credit unions throughout the Mid-Atlantic States to educate and train them on the merits of member business lending. His primary role at MBFS is leading the day-to-day operations of the organization and consulting with credit unions on planning the delivery of business services to their membership. Mark is a native of Berwick, PA and a graduate of Penn State University.
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