Small Businesses Need to Open their Eyes to Alternative Financing
A recent Inc.com article called New Rules of Getting a Small Business Loan covered alternative financing. This was a healthy introduction by Inc.com to show small and mid-sized businesses that there places to go for funding when the banks say no.
The article helped show that besides SBA loans, alternative financing options like factoring, private lenders and small banks were resources.
There is a lot more to alternative financing than what was covered in the article, but I am pleased that Inc.com (a brilliant read for entrepreneurs and small businesses) is bringing a subject that can make or break small business to light...
Many CEOs and CFOs of smaller companies don't know what they don't know when it comes to securing funding. Collateral is a big piece of the financing puzzle, as communicated by Ami Kassar, small business lending expert. "If you have sufficient collateral tied to real estate and want to avoid the rigid credit policies often associated with bank loans, going through a private moneylender may be your best bet", Kassar states in the Inc.com article.
Where small and mid-sized businesses across the country see a challenge in qualifying for credit and obtaining the funding they need, there are also opportunities if you have the right advisory and experts on your side.
In my opinion, there is already plenty of help available for small businesses that need funding - business leaders need to think outside of the traditional funding box and be willing to recognize that they do what they do best and they need others (like funding pros) to help do the rest.
Alternative financing options, like asset-based lending, were not covered in the article and can be a solution to help many businesses get the backing they need when the banks say “no.” While these loans may cost businesses more in interest in the short-term, they could be the financing solution to get a business back on its feet. I recommend that businesses who need financing seek out an expert who has experience in alternative financing as professionals. US Capital Partners helps small and mid-cap companies via direct lending and/or funding advisory look at ways to provide capital for your business.
As I have said before in media releases, help for small business lending is not on the way – it's already here --you just need to look (and most times need to know where to look). If your business doesn't fit the bank's narrow (and narrowing) loan criteria, this is a time when you need to think outside the bankable box to get help rehabilitating and re-structuring your finances.
Funding success comes in CANs and funding failure comes in CAN'Ts...you can't wait for the banks or SBAs to loan you money or for the administration to fix the economy. Be proactive in managing your business and seek out a specialized financial advisor/lender who can advise you on what you CAN do.