Doesn’t it seem like no matter how much cash you have available it’s just never quite enough? If you’re in that boat right now you are not alone. The constant search for working capital is what consumes most of the time of small business owners everywhere. Whether it’s a push to get a new product out, a campaign to increase productivity or a tedious application process to get a loan or credit line, the HULT PRIVATE CAPITAL constant battle for enough working capital to keep going is always raging.
The good news is that there are multiple sources to get the funding, and the obstacles you have to overcome to get it are not as formidable as you might think.
Many commercial lenders also lend money for residential mortgages, they need to find ways to make up the money they are losing in that market by increasing loans in other areas. Small business loans, credit lines, and working capital financing are just a few of the areas where they are concentrating their efforts. If you own a business and have a need for funding this is a good time to ask. The Government is also looking for commercial banks to take advantage of the Small Business Administration Loan Guarantee.
Working with a private investors is more difficult than going to the bank because you have to show that your company has current value and potential for growth. Investors today are more cautious after what has been a very difficult two years where many have taken serious losses. On the upside, many investors are starting to lend money again, now could be a good time to find a private capital investors.
Use the SBA Microloan Guarantee
The Small Business Administration can be your ace in the hole when it come to getting a little working capital. The government will guarantee your loan, if anything happens to your business and you default, the SBA guarantees that they will pay the loan off for you. This is a win win for both you and your bank. If a lender turns you down, ask if they offer a SBA loan. If they do ask to apply, if not, ask for a referral to an institution that does.
If you can, the best way to get working capital funding is to go to your local bank or credit union and apply for it. An alternative to going door to door would be to fill out a small business loan application with a websites that will shop your request to different financial institutions. Some even offer avenues to find private financing. Diversify your efforts so that you can have some choices and don’t jump at the first offer that comes along. Sub-prime lenders will finance anyone but you’ll pay a price for it.