17 minute read
financing the dream
You’re Not a Loan
Have questions for the bank? Us, too
By Mallory Arnold
APPLYING FOR BUSINESS loans can be stressful, daunting and confusing if you don’t know where to begin. Mike Lamping, Columbus market president at First Federal Lakewood, answers our questions about types of business loans, good and bad credit, and how to get approved.
Lamping categorizes commercial business loans into four segments:
Commercial real estate: a mortgage secured by a lien on commercial property opposed to a residential property. Commercial real estate refers to any incomeproducing real estate used for business such as offices, retail or apartments.
Line of credit: a flexible loan that consists of a defined amount of money you can access as needed and repay over time. “This works for day-to-day operational aspects,” Lamping says. “Hopefully, over time, the business becomes less dependent on lines of credit.”
Term debt: a loan with a set payment schedule over several months or years. “This type of loan is for things like equipment purchases, office purchases, manufacturing equipment and vehicles,” Lamping says.
Acquisition loan: a loan given to a company to purchase a specific asset or to acquire another business. “The purchase price is based on the customer and client list,” Lamping says. “It’s not tangible collateral.”
It’s fairly straightforward to pick a loan option based on an individual’s situation. Once a business owner decides on the type of loan to apply for, it’s important to investigate their credit so as to not go into a bank blind.
What many people don’t know, Lamping says, is that there are two types of credit to account for: business credit and personal credit. Business credit is based on any past business financial history, while personal credit is tied to personal spending history. Bankers often look at both.
“For a typical small business, the individual and small business are very closely related,” Lamping says. “So it can be hard to separate. If a person as an individual has a bad credit score, it carries over to the application for the business loan.”
According to Global Finance, a business line of credit is one of the most soughtafter loans because it’s perceived as easy to attain. Lamping says that, like any loan, a line of credit is beneficial for specific instances. Lines of credit are meant for managing short-term swings of liquidity.
“Maybe you’re a candy company and most of your business is sold around Christmastime,” Lamping says. “So, in the warmer months, you’re building up inventory and drawing from your line of credit so that, during the holiday season, you’ll be flooded with cash and can pay the line down.”
This is far different compared to an instance where a business wants to a loan to purchase a truck. In that case, a term loan would be most appropriate, since a truck is going to be around for at least four or five years.
“You’re matching that asset life with the loan term,” Lamping says.
Risky Business
Certain industries are viewed as riskier than others because of historical success rates in those businesses. For this reason, loans may be difficult for restaurants, bars and hotels to attain.
If a business is considered risky, how does one make their application for a loan more attractive?
“Put up more money as far as collateral or equity,” Lamping says. “Instead of 20 percent equity, put up 30. This allows for less risk for the bank.”
He also advises that businesses should demonstrate they have enough liquidity to sustain things in the event that profit doesn’t come as quickly as projected or if other issues arise.
“People can make some pretty fancy Excel spreadsheets and presentations to show how profitable their business is going to be," Lamping says. "But the question is going to be, does the bank feel comfortable
that the individual can execute the plan to get the results?”
Lamping says helping an entrepreneur succeed is one of the most rewarding things a banker can do.
Bank on It
With so many opinions, experiences and information on the internet, it’s easy for people to confuse the facts. Business Partner Magazine published three of the biggest myths about business loans: • Only failing businesses need loans – A loan is an investment in a company and should be considered as part of the business plan and process as it grows and develops. • Only perfect credit scores result in loans –
Lots of facets of an application come into play with a loan, including annual turnover, cash flow and a repayment plan. • Business loans take a long time – If done correctly, a business loan can be filled out online in under an hour and receive a response in just a few days.
Lamping says one the biggest misconceptions he hears is that banks don’t want to make loans.
“That’s absolutely crazy because, in reality, banks make money through loans,” he says. “A lot of people believe that banks are against them.”
The biggest DO and the biggest DON’T when applying for a business loan
DO: “Be prepared. Have a clear understanding of what you’re trying to accomplish and the purpose of the loan. People are too vague. What are you going to do with the loan? Why do you need the amount you’re requesting? How are you going to repay us? What’s your plan to clear up any damages to your credit?”
DON’T: “Lie. A lot of times, people fudge the truth about information bankers require. When a bank asks, ‘Are there any mortgages on the property?’ and the client lies and says no, then down the road, that creates a credibility issue. If you have some blemishes on personal credit, you need to be up-front with the banker. If you’re honest about it at first, you’re able to explain yourself better. It may or may not be an important factor.” CS
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Record-breaking year of voting
By Mallory Arnold
The 2021 Best of the ’Bus Awards received more votes than any year since its 2011 conception. Thousands of Columbus artists, chefs, students, CEOs, businesses and neighbors voted every single day to give their local favorite a chance to be the Best of the ‘Bus.
Congratulations, 2021 Best of the ’Bus winners!
Best Face of Columbus Jack Hanna
In April 2021, Jack Hanna and his family shared personal news that Hanna has been diagnosed with Alzheimer’s disease and would be dialing back his public presence to spend time with his family.
Kathaleen, Suzanne and Julie Hanna released a statement to the public explaining the circumstances:
“Dad loves the Columbus Zoo and The Wilds and has great appreciation for the hundreds of employees and volunteers who work extremely hard each day to care for the animals and ensure an incredible experience for the families who visit. We share his dedication to the central Ohio community and will continue to support the Columbus Zoo and conservation efforts around the world.”
To read some of Hanna’s best moments at the Columbus Zoo, go online to www. cityscenecolumbus.com! Best Virtual Charity Event Pelotonia
For the first time ever, Pelotonia went virtual in 2020, allowing participants to log their Pelotonia journey anywhere, anytime. The platform encouraged not only biking, but also walking, running, swimming or any other mode of transportation participants could come up with. The response was so positive that, in addition to the in-person event, the virtual option will be included in the 2021 event.
Best Volunteer Experience Mid-Ohio Food Collective • 74 million pounds of food distributed in 2020. • 600,000 family dinner tables were served. • 60 percent of the delivered food was healthful, fresh produce.
Best Auto Dealer TIE: Roush Honda and Honda Marysville
Best Senior Living Community Wesley Communities
Best Salon PENZONE Salons + Spas
The family of PENZONE Salons + Spas clientele speaks volumes – and we’re not just talking hair volume! From Matcha Monday, when Crimson Cup matcha is given out hot or over ice, to the grand opening of PENZONE in Gahanna/New Albany, there’s no question that this salon has style that will last for a while. Best Farmers’ Market Experience Grove City Farmers’ Market
Grove City edged out last year’s winner, Worthington Farmers Market, by just two votes. Check out the market’s comprehensive calendar to figure out which season hosts which produce.
Best of Financial Services
Best Credit Union KEMBA Financial Credit Union Best Bank Huntington Bank
Best Financial Advisory Firm Morgan Stanley Investments
We were invested in the results of this brand new 2021 category, as the fight was close. Morgan Stanley Investments came out on top with a wealth of votes.
Best Builder M/I Homes, Inc. Best Remodeling Company Dave Fox Design Build Remodelers Best Handyman Mr. Handyman Best Landscape Company Oakland Nursery Best Roofing Company Feazel Roofing
Best HVAC Company Logan AC & Heat Services Best Moving Company Two Men and a Truck Moving and Junk Removal Best Window Company Rosati Windows and Doors Best Plumbing Atlas Butler Heating & Cooling Best Realty Company Keller Williams Capital Partners
Pelotonia Best Weekend Getaway Hocking Hills
Did you know that the southern flying squirrel is one of the most common squirrels in Ohio? While rare, these little guys like to hide high in the treetops. They have flaps in their skin that allow them to glide up to 250 feet in the air. If you’re hoping to spot one in Hocking Hills, visit in February-March or May-July.
Welcome
Morgan Stanley is proud to welcome Rachel Beck to the Dublin, Ohio branch. Being dedicated to her clients and their family’s future is the first step in helping them achieve their financial goals. With a goals based approach, Rachel can help create a comprehensive financial strategy customized to her clients’ needs, while considering various aspects of their lives.
Contact Rachel to learn more about how she helps her clients.
Hocking Hills
Senior Vice President Financial advisor
545 Metro Place South Dublin, OH 43017
rachel.beck@morganstanley.com advisor.morganstanley.com/ rachel.beck
Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trusts, estate planning, charitable giving, philanthropic planning or other legal matters.
© 2021 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 3516243 03/21 CS 10016498 04/21
Best TV Binge Ozark
Best Book American Dirt by Jeanine Cummins
Best Carryout Roosters
Not only did Roosters win Best Carryout, but if there was an award for most creative Valentine's Day gift, it would go to the "winquet" deliveries.
Best Place to Gamble Hollywood Casino Columbus
Best Urban Gallery/Gallery Event Short North Arts District March Virtual Gallery Hop
Hollywood Casino Columbus
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Best Suburban Art Gallery/ Gallery Event Grove City Arts in the Alley
The Arts in the Alley Music and Arts Festival has been a pivotal part of Grove City for almost 42 years. Every year, hundreds of juried exhibitors gather in the area to show off photography, jewelry, fine art, crafts, glasswork, pottery and more. Grove City is lucky to be p(ART) of such a unique event!
2021 Grove City Arts in the Alley Sept. 18-19, 2021
Grove City Town Center, intersection of Broadway and Park Street Saturday: 9:30 a.m.-8:30 p.m. Sunday: 10 a.m.-5 p.m
Shadowbox Live
Best Theater Troupe Shadowbox Live
Shadowbox Live reopened its doors in late May, presenting The Legends of Liverpool and Let’s Get It On: Live Edition.
See full interview with Stacie Boord, Shadowbox Live’s CEO, on page 6.
Best Dance Troupe BalletMet
Best Local Musician Joey & Jessica
This musical couple met in 2008 when they were cast in Worthington Community Theatre’s production of Cinderella, Joey cast as Prince Charming and Jessica cast as Cinderella. They began dating and performing together in a few different bands. Joey proposed on The Oprah Winfrey Show in 2011.
Moving Junk Removal
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Best Drive-In Movies Easton Town Center
Movies by Moonlight is an outdoor, free summer activity. Moviegoers get to spend a night watching movie stars on the screen while seated below the stars in the sky. Some of the June movies included The Wizard of Oz, Field of Dreams and Despicable Me.
Best 2020-21 Virtual Arts Performance Jazz Arts Group’s PB & Jazz Virtual Concert Series
Best 2020-21 Drive-In Concert Dublin Arts Council Curbside Concerts
When Dublin neighbors couldn’t leave their homes amid quarantine in 2020, the Dublin Arts Council brought musical performances to their driveways! Through requests, the DAC brought music to people’s homes by delivering lively performances right on the curb.
Thank you Columbus! Voted Best Pizza
masseyspizza.com
Best New Restaurant The Royce
Always an exciting race to watch, the Best New Restaurant category is awarded to the Royce, a homestyle, made-withlove, gives-you-goosebumps restaurant in Polaris Fashion Place.
See full interview with the Royce owner on page 10.
Best Hometown Product Jeni’s Splendid Ice Creams
In Jeni’s journey to make ice cream an acceptable breakfast food, a line of breakfast flavors was introduced. We have to say, Jeni’s makes a delicious and compelling argument.
Best Coffee Stauf’s Coffee Roasters
Last year, Stauf’s was nudged out of the winning seat for Best Coffee by Fox in the Snow Café, but this year came back with a caffeine kick to reclaim the crown!
Best Steak Hyde Park Prime Steakhouse
Jeff Ruby’s Steakhouse was overtaken by Hyde Park Prime Steakhouse this year after a tumultuous battle. While the competition was tough, Hyde Park steaks are anything but. Plus, with cuts such as the Ryan Day Steak, 36-day dry-aged bone-in ribeye, and the Urban Meyer Steak, a New York strip, the stakes are high.
Best Bakery Schneider’s Bakery
Best Ice Cream Graeter’s Ice Cream
It’s no wonder Graeter’s took this sweet, sweet victory. Dogs Night Out on Graeter’s patios are a huge success, as all furry friends receive a free Dogsters ice cream treat.
Best Outdoor Dining Lindey’s Restaurant & Bar
For the fourth year in the row, Lindey’s wins Best Outdoor Dining, and there’s no question as to why. Warm summer evenings spent on Lindey’s patio are brag-worthy memories and highly coveted. Make sure to make reservations in advance for patio season! Best Pizza Massey’s Pizza
Q&A with Massey’s Pizza owner Richard Folk
CityScene Magazine: Massey’s pizza is covered with pepperoni. How heavy does that make the pizza?
Richard Folk: Our pizza is three pounds before cooking, though it loses some weight in the cooking process!
CM: Favorite pizza on the menu?
RF: It’s hard to beat our flagship pie, the regular crust pepperoni pizza. But if I was to order just for myself, I would get pepperoni and onion on our cauliflower crust, which is lower carb and gluten-free.
CM: Do you fold your pizza slices when you eat? How do you feel about using a fork and knife?
RF: No folding – that’s a New York-style thing. Our pizza is cut in squares and is too crispy to fold. Pizza with a fork is bad. If you don’t get grease and cornmeal on your fingers, you’re doing it wrong!
CM: What’s the strangest topping you’ve ever put on pizza?
RF: Nothing too crazy, but Gorgonzola cheese is fantastic and, paired with jalapenos, has a magical bite to it.
Jeni’s Splendid Ice Creams Lindey’s Restaurant & Bar
Best Food Truck Schmidt’s Sausage Truck
Schmidt’s was trucking around before food trucks were trendy on Instagram! In the early 1900s, Schmidt’s bought a fleet of trucks that delivered sausage around the community – though the early trucks didn’t have Bahama Mamas and Jumbo Cream Puffs. Congratulations, Schmidt’s, you’re 2021 wieners!
Highbanks Metro Park Best Brewery Grove City Brewing Company
Best Winery Buckeye Lake Winery
Best Retail Wine Selection and Best Retail Beer Selection Giant Eagle
Giant Eagle nabs two 2021 awards, so it’s obviously no question where you should snag your wine and beer for the weekend!
Best Fitness Classes Orangetheory, Grove City
This workout kicks butt, and so did the Grove City Orangetheory in the 2021 Best Fitness Classes category. The studio is active in the community, making it easy to get to know trainees personally and spreading positivity. The #TuesdayTestimony features a new member each week, and there’s even a “brag board” to praise hardworking trainees. Best Nature Trail Highbanks Metro Park
Best Barbecue City Barbeque and Catering
City Barbeque smoked the competition this year. This win might have been spurred by the release of The City Barbeque 2020 Holiday Leftovers Cookbook, a staple for anyone tired of simply reheating their leftovers. BORING!
Mallory Arnold is an editor. Feedback welcome at marnold@cityscenemediagroup.com.
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