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Alternative Ways To Finance A Business When Banks Say No
If I can get a little patriotic with you for a moment, America is a great place. We can pursue our dreams here easier than many other countries. There can be hurdles and hassles, sure, but if you have the desire and some sort of strategy, you can get where you want to go as long as you're persistent.
I guess you could say there are two types of American dreams, owning your own home and owning your own business. For many years I have worked with small and medium sized businesses. I saw all sorts of people working to fulfill their dream of being their own boss.
Years ago I worked with my father in the family business, which was essentially sales and distribution to cabinet shops and kitchen dealers. I remember seeing talented craftsmen and women struggle to make their businesses work. They knew how to build something but they didn't know much about finance or marketing. We tried to help.
More recently as a banker, SBA lender, and commercial loan broker, I have provided financing to literally hundreds of businesses. I really enjoy helping people make their business work. It is wonderful to see someone get funding for their startup business, so they can go out on their own. I also really enjoy helping existing businesses get out from some old debt or maybe expand to a larger facility. I remember helping a pediatric doctor refinance some debt and get working capital to do other new projects. This doctor was committed to helping kids and I loved being a part of the solution.
In 2008 and 2009, we all heard how tough it was to get financing from banks. It is still true than banks aren't lending like they used to do it. However, I am here to say that there are still many alternative financing methods to start a business, buy an existing business, or find working capital to help a business become more profitable.
The goal in my business life is to help entrepreneurs improve their situation and 'make it happen'. Whatever it is, I am confident that there is a solution or choice to a business's financial situation, despite what the media tells us.
Example: A couple wanted to start up a franchise. They had experience and some capital but because of the type of franchise, it didn't qualify for SBA loans and regular bank financing wouldn't work. So instead they went to a specialty firm that allows them to rollover a 401K or IRA and use those funds to invest in the business without tax or penalties. They can use the capital to invest in themselves and make the business happen.
Another example: a family had experience running and turning around hotels. They owned one hotel which they had already bought, renovated, and made into a strong business. They found another great hotel at a discount. SBA and typical loans wouldn't work. So instead they used a combination of a bridge loan (hard money) and mezzanine financing to buy the new hotel.
Author Resource:-
Jim Frey is a former VP of a billion dollar bank and currently a commercial loan broker, public speaker, author and he enjoys helping entrepreneurs find alternative ways to finance their projects. Get his ebook at http://www.doughforthedream.com or Listen at http://www.doughforthedream.podomatic.com
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2010-02-19 02:21:39 By:
Jim Frey Article Read 143 Times Article From Article Listed
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