Here’s The Reason Why You’ve Had Trouble Getting A Loan For Your Business
Have you ever had a hard time getting a loan for your business from the bank?
Have you wondered why?
Check out this article called “The Five ‘C’s Of Small Business Lending” by Ty Kiisel and discover what your banker wants to know before he or she will loan money to you…
“Getting a small business off the ground is no easy task. If you’ve heard the old adage, ‘It takes money to make money,’ nowhere is it truer than when starting a business. This is particularly true for the smallest of small businesses—what some people call micro businesses.
“Banks aren’t very excited to finance what they consider highly risky ventures and in recent years have even moved upstream to bigger and potentially less risky and more profitable fish. There are other options for small business owners with alternative, non-bank, lenders, but many business owners don’t completely understand or trust some of them. Traditionally small business borrowers have gone to the bank, right?
“It’s where we tend to look for financing, but it isn’t where we find it. In the Q3 Pepperdine University Quarterly Capital Access Index, the research suggests 59 percent of small business owners look at the bank, but only 27 percent of them find financing there. And, that’s a pretty generous sample. Some sources say the number of small business borrowers who are successful at the local bank is more like 10 percent. Either way you look at it, you have to wonder, “Why?”
Photo by Tax Credits
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