Bad Credit Loans - Business Borrowing

Key to Business Borrowing: Finding the Right Lender for You
By Berwyn J. Kemp

Getting the business loan that you need to start up, more effectively operate, and grow your business will do a lot of positive things for you. It will allow you to not only achieve your business goals, but your personal goals as well. The main key to getting the business loan that you seek is finding the right lender for your business funding needs.

But, to find the right lender for you, you must approach the matter in an organized and systematic manner. By making a set number of lender contacts each business day, until you get the capital you need. Moreover, you must be prepared to not take no for an answer. And use each lender contact as a learning experience.

Lenders come in many varieties, and include such lenders as: Commercial Banks, Commercial finance Firms, The SBA, Small Business Investment Companies, Community Development Financial Institutions, and others. While this list, of course, isn’t complete. Just contacting these sources will keep you busy a while. Now we’ll take a closer look at each of these sources of business loans.

Commercial Banks

Commercial banks are the business lenders of the nation. There are approximately some 14,000 commercial banks in the United States. They offer a wide variety of lending products for small businesses like yours. On the other hand commercial banks are one of the most conservative lenders around. But many are making it easier for small businesses to secure financing through them. And they very well might be able to help you, so don’t count them out.
Commercial Finance Firms
These lenders also offer a number of lending products that can help your business. Also, as a rule, commercial finance firms will lend on more riskier projects, than their cousins, the commercial banks. Thus, you might try some commercial finance firms to obtain the funds you need. If you’re having trouble securing traditional bank financing.

The SBA

While the SBA doesn’t actually make loans, what they do most is provide loan guarantees. With a SBA loan guarantee you can quite easily borrow the money you need from any number of lenders. Who would be very happy to make you the loan that the SBA has guaranteed. The closing time on these loans can take six months or longer. However, you business could be right for one of these guarantees. If you don’t know whether or not you are, then why not find out by contacting your local SBA office.

Small Business Investment Companies

Small Business Investment Companies (SBICs) are SBA regulated, but privately owned lenders. They provide start up, operating, and expansion loans to small businesses. There is also a group of SBICs called Specialized Small Business Investment Companies (SSBICs) that only lend to minority enterprises, which includes women owned business too. Contact your local SBA office for more information on SBICs.

Community Development Financial Institutions

These lenders were set up to make loans to businesses that help the community in some way, as indeed most businesses do. There are about 500 CDFIs nationwide, and they provide many millions of dollars to many different kinds of businesses each year. For more info on CDIFs you can contact the Community Capital Association located in Philadelphia PA.

You can get the funding you need to build your business. But you must approach the right lender or lenders for you. And you must be organized and systematic in your approach. In addition, you must be unwilling to take no for an answer. Because if you look far and wide enough you will get the business funds you need.

Berwyn J. Kemp is a financial consultant who helps businesses get funding to start up, more effectively operate, or expand. For full information on his funding products and services call (419)243-8373 visit him at: http://www.bkempassoc.citymax.com NOW!