The recent economy has been difficult for many, but one pleasant effect of the downturn is the new opportunities for entrepreneurs and small businesses. Large companies with big budgets and fixed expenses are becoming obsolete, and small business owners in niche markets are sliding in to benefit from the situation. Nevertheless, it is still tough for a small business owner to obtain the loans they need to capitalize on these opportunities. I have been a financing specialist to the small business owner for 20 years, and I can assure you that there are loan vehicles available even today for small businesses. The environment changes on almost a daily basis, however, which makes it extremely hard for the small business owner to contend with. It will be critical for you to investigate to find new financing options other than historically conventional bank loans, as those are becoming more and more difficult for a small business owner to obtain. It may be in your best interest to work with a small business financial advisor who knows the market and the people interested in investing in small businesses. He will be a valuable resource in navigating the application process and presenting you in the best light to potential lenders. 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. With the recent stock market performance, many private equity and non-bank loan options abound as private investors look for different ways to invest their money. An adept financial advisor will have a collection of possible private lenders and will understand the information they need on potential investments. When evaluating a small business for a possible loan, lenders are using new benchmarks than before. You as a small business owner must do whatever you can to highlight your company in a positive way under the new criteria. 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 your credit score or other financial information is less than stellar, you will need a small business financial advisor to work on your behalf as soon as possible. They will work closely with you to create a loan package that will tell your story in a way that encourages lenders to approve your loan. If it turns out you need alternative private financing to achieve your goals, a great financial representative will be able to match you up with the right resources. Whatever you do, dont give up on your dream for your business. The small business opportunities are more abundant than ever in this changing environment, and the right advocate for your business will help you to achieve it.
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Tips To Prepare Your SBA Loan Applicationby WellsFargoBusiness2,793 views
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