Wednesday, February 20, 2008

Solid Cash Flow & More Collateral

With tighter lending standards, small businesses seeking financing now must have good credit, solid cash flow, more collateral and more cash for down payments according to Keith Leggett, senior economist at the American Bankers Association.

In USA Today, Leggett and others say that small firms with good credit quality still are able to land financing and grow. It is suggested these firms investigate financing from smaller community banks. Having avoided high-risk securities and poor lending practices, the smaller community banks haven't been humbled by the housing slump and subprime debacle.

What if your business doesn't qualify as a good credit? There is still plenty of money around. It's just being re-priced for risk.

Consider SBA loans, state backed loan programs, commercial finance companies, leasing companies and accounts receivable financing. You may pay a bit more for your money, but your business will have the working capital it needs to transition to better times.

Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!

Tags : USA Today , small business loans , Keith Leggett , American Bankers Association

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