Although you donâ€™t want to have to say no to your small business customers, it could be that they just donâ€™t meet your requirements for a business loan. But that doesnâ€™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 youâ€™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, youâ€™ll be familiar with their application processâ€¦ and youâ€™ll know itâ€™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 whoâ€™s ready to answer all questions relating to their business is essential.
At the end of the day, itâ€™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, Itâ€™s a good idea to sit down with your small business customers and carefully go through their application to make sure they havenâ€™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