Nevertheless, it is still tough for a small business owner to obtain the loans they need to capitalize on these opportunities.
As a small business finance specialist for over 20 years, I can tell you that the small business financing resources are there. The problem is that in this economic environment, it changes fast and furiously and it is impossible for a small business owner to keep up.
The first step to your small business financing success will be to research the non-bank financing alternatives available to small business owners as traditional bank options are becoming much less available. You may prefer to find a small business advisor who has the contacts and the expertise in the small business financing arena. That expert can act as your advocate with the small business lenders and work on your behalf in obtaining the financing you need.
There are a number of great programs available right now that you might want to take advantage of if you are looking for equipment financing or other financing for your small business.
1. New Small Business Administration Programs. There has been a lot of promotion by the Small Business Administration for some new programs they have established for the small business owner. While these loans sound great and often are, the government requirements and paperwork often results in the borrower throwing up their hands in surrender.
The SBA bureaucracy can be discouraging and can even impair your companys success if you dont know how to work with the SBA. My suggestion is that if you choose to go the SBA route you find an advisor familiar with the Small Business Administration regulations to keep the process on track and ease a great deal of the administrative burden.
2. There are many programs still available that allow you to lease new or used equipment with very little or even nothing down. These programs can often provide funding in five days or less. However, they are not often advertised, and the application process can be confusing. Again, a qualified financial advisor can guide you through the financing barriers related to these equipment loans.
3. More and more private investors are looking for alternate vehicles to invest their money in, especially due to the recent performance in the stock market. An expert small business advisor will have a portfolio of potential financiers and will be adept at presenting your small business in the best possible light.
The standards used by Lenders when reviewing potential small business lending opportunities are different than they once were. Your job is to make sure that your small business shines in the best possible way in the particular areas that lenders are concerned with.
Under the best possible circumstances you will be able to show your lender great credit scores and outstanding financial statements. A prime underwriting concern today is cash flow, and the ability to repay your loan, with past records to support it will be closely reviewed. The most cautious lenders will also be looking for a second way to be repaid, such as a guarantor or some form of collateral.
If there is a piece to the puzzle that is not as great as youd like, an experienced small business advisor working on your behalf from the start will be even more important. He will consult with you personally to create a lender friendly loan presentation that tells your story in the best possible light in order to get the loan approved.
If a private lender is the right choice to help your business achieve its objectives, an adept financial advisor will match you with the right resource. The key is to not give up on your goals for your business. The opportunities for progressive entrepreneurs are more plentiful than ever, and the right financial consultant is just what you need to capitalize on those opportunities.
Scott R. Jordan is a previous banker and mortgage broker who invests his more than 20 years of experience to help small business owners in steering through the complicated lending industry and reaching their goals. Scott has the resources and experience you need to meet your financing goals. Get his special report, “9 Secrets Your Banker Never Told You!” at www.YourBusinessLoanNow.com
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