OTHER OPTIONS FOR SMALL BUSINESSES
Even in today’s post-credit-crunch environment, business owners might perceive that lending options are scarce. In addition to what I have mentioned, other types of loans include purchase-order financing, accounts receivable financing, and mezzanine financing, as well as hard-money lenders. The Fact is, commercial lending is more plentiful than it has been in several years. Banks and other financiers have lots of cash to lend. So, always consider your primary banking relationship as a viable source of capital. In addition, companies have access to resources, including the U.S. Small Business Administration (SBA). The SBA guarantees loans by commercial banks and has a variety of programs based on your company’s size, industry and stage of development. This can enhance your credit worthiness. And, don’t let the word “small” fool you. The SBA defines small business differently from what you may think. Today’s entrepreneurs can also use the Internet to find loans. There are a growing number of sites trying to assist with both debt and equity. Try Boefly.com for loans or examine “crowd-funding” sources. Micro-loan financing destinations like Kiva.org may be able to provide boost they need. Aside from evaluating loans, you should also compare lenders. Look beyond interest rates at terms, fees and costs. Also, consider how much experience your lender has in your industry and its willingness to stick with you over time. When you thing you have found the right lender, examine how it addressed past crises and current media attention. And no matter what you decide, never finance a long-term loan. With an honest evaluation of your borrowing potential, you will be set for the next stage in your business, whatever that may be.