Mercedes Blanca: Hispanic businesses seeking long-term growth

Hispanic business owners in Florida are optimistic about their companies’ prospects and hope to grow their businesses over the next two years, but doubts about the economy and cutbacks in spending could stall any attempts at future expansion.

The findings from the first-ever PNC Hispanic Business Owners Outlook show that although Latino owners are mostly satisfied with their companies’ performance and prospects, they are hunkering down in the face of a stubborn U.S. economic environment. Across-the-board, owners plan to save more and spend less, which could serve as a stumbling block for growth.

For Hispanic business owners, adapting to the U.S. business climate is an important first step toward success. However, it is often the education and insight gained from banks and other business partners that enable an owner to continue making the right decisions to help grow their business going forward.

PNC Bank has a longstanding tradition of offering financial advice and solutions to Hispanic-owned businesses. There are many different ways to grow and advance a small business. Whether it’s investing in training or new technology, or purchasing a new facility to expand your inventory, establishing separate business credit and using it wisely is critical to growing any business. This month, PNC commemorates Hispanic Heritage Month throughout its footprint, with educational and informational programs that honor and engage customers, communities, employees and suppliers.

With that in mind, consider the five C’s of credit to help you grow and expand your business:

1. Know your capacity: There are numerous financial benchmarks such as debt and liquidity ratios that banks use before providing a loan or line of credit. What is your company’s borrowing history and track record of repayment? How much debt can your company handle?

2. Personal capital: It’s best not to put all of your personal assets on the line, but if you have invested in your company, it demonstrates to the bank a personal commitment and could make the banker more inclined to lend to you.

3. Monitor economic conditions: One constant with the economy is change. If your business is sensitive to economic downturns, the bank wants to know that you are adept at managing productivity and expenses through good and bad cycles.

4. Make use of business collateral: Unless you are a business with a proven payments track record, you will almost always be required to pledge collateral. While cash flow is usually the primary source of repayment of a loan, bankers also look at secondary sources of repayment such as real estate, inventory or accounts receivable.

5. Your good character: Simply put, banks want to put their money with business owners who have the best credentials and references.

For a closer look at the national and regional survey results, please take a look at the online media kit on PNC’s website at www.pnc.com/pncpresskits. The PNC Financial Services Group Inc. (NYSE: PNC) is one of the nation’s largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.

Mercedes Blanca is a business banker for PNC Bank in Central Florida and can be reached at 407-739-5698 or [email protected]