Black Business Owners & The Challenges Obtaining Capital [Video]

Getting capital from banks has always been tough for black business owners. Personally, I’ve managed to secure lines of credit and credit cards from major banks, so I know what it takes to get approved.

Let’s move past the idea that being black is the only reason we get turned down. When I got my credit line from Chase, it was all done online. They didn’t even see me in person for the initial approval. The real issue is that we often don’t know what banks are looking for when they decide to approve a loan.

Here’s the deal: to get a loan from a big bank, you usually need two years of business tax returns, stellar personal credit, and most importantly, a solid profit. That’s what banks care about—they want to see if you can pay back what you borrow. If your taxes show you’re not making money or you’re underreporting to save on taxes, it doesn’t matter how much you’re bringing in.