Saturday, 23 September 2017

Information and commentary for the small business banking industry

An alternative lending solution for small businesses

20 Dec

Although you don’t want to have to say no to your small business customers, it could be that they just don’t meet your requirements for a business loan. But that doesn’t have to be the end of it. There is an alternative.

The US Small Business Administration is a government department aimed at helping small businesses. If you’re one of their approved lenders, you can steer your small business customers in their direction as an alternate source of finance.

As an SBA approved lender, you’ll be familiar with their application process… and you’ll know it’s no picnic.

So preparation is crucial. You and the SBA will want to be confident that an applicant knows their business inside and out. A well-prepared application and a business owner who’s ready to answer all questions relating to their business is essential.

At the end of the day, it’s all about due diligence. The better prepared they are, the more streamlined this often difficult process will be. Remembering that the funds are coming from you, It’s a good idea to sit down with your small business customers and carefully go through their application to make sure they haven’t missed anything out.

The below article looks at the 5 main reasons banks decline to loan to SMEs. And if any of them sound familiar, just remember the SBA option.

Read the full article at: www.entrepreneur.com

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