It’s easy to think of lenders as doing your company a favor. But
business financing relationships are just that: relationships. Yes, a lender
has the working capital you need to grow. But a stable, successful business
represents an enormously beneficial opportunity for the lender as well. So you
should be just as picky with your lender as it is with your financials.
Where to start
If you indeed have a long-standing relationship with a local
bank, make that your first call. There’s no understating the importance of
familiarity, good communication and an amicable rapport when negotiating terms,
making payments and dealing with whatever business complications may come up.
But should your local bank not offer the size or scope of
financing needed, or if you’d just like to get an idea of what else is out
there, don’t hesitate to shop around. Look for a lender with multiple loan
products, so you have a better chance at structuring one to your liking. And
get some referrals regarding the strength of service and support.
Other alternatives
If yours is a small business, check into the availability of
Small Business Administration or other government-backed loan programs. These
are often designed to boost local economies, so you may be able to get
favorable terms and rates.
Last, but not least, don’t limit yourself to traditional
lenders. Today’s lending environment is competitive and technology driven. So
businesses have a wide variety of alternatives, many of which are just a few
clicks away. These include angel investors, online peer-to-peer lending
networks and crowdsourcing.
Best results
Many, if not most, companies can’t grow without taking on some
debt. But precisely how you go about using debt to your advantage depends
largely on the lenders with which you choose to do business. Let us play
matchmaker and help you find the ideal partner. We can also offer assistance in
structuring and presenting your financial statements for best results.
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