With the recession in full bloom and few signs of the economy bounding back anytime soon, we have received a large volume of questions from small business owners inquiring about their ability to get a business loan. Typically, the question goes something like this.
“I’ve been business banking with (insert name of crumbling financial institution) since I started my business a while ago, but they declined me for a business loan. I’ve never had a late payment and, though my business is slower than last year, I’m still turning a profit. What can I do?”
When you’re searching for a business, it makes sense to start with your current business bank. After all, you’ve built a relationship with the people at the bank and they want to keep your deposits at their institution. They should be your best shot, right?
In a sound economic environment, this may be true. But the current economic environment hasn’t affected all financial institutions to the same degree. There are national banks with solid footing and there are national banks receiving multiple rounds of capital infusion from the government. There are community banks in expansion mode and there are community banks that have failed… regional banks acquiring and regional banks getting acquired. You get the point. Getting declined for a loan from your financial institution, does not mean that you can’t get a business loan. Let me repeat – even if your business bank says no, there may be another financial institution that will approve you for a business loan.
Here’s a tip. Keep your eyes peeled for financial institutions advertising or sponsoring events in your community. If these institutions are spending money on marketing, it’s for a reason. They’re aggressively looking to expand their client base, and their balance sheet is healthy enough to allot expenditures for branding.
This article was submitted by Katie Kapler, Director of Online Strategy for Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com paul blart mall cop HDdownload never mind