No bank wants to turn down a loan application, but sometimes there’s no other option. However your bank’s small business advisors can still offer support and advice around financing, so all is not lost.
If you’ve had to say no, soften the blow by pointing your small business advisors in a different direction. If you’re an approved SBA lender, help them navigate the dense thicket of U.S. Small Business Adminstration loan programmes – chances are pretty good they’ll qualify.
Or you could help them to understand other forms of financing, such as crowdfunding, venture capitalists and angel investors.
If their business is not the kind that would appeal to investors, then there are often ways they can find the extra cash they need by looking within – bootstrapping their business, selling un-used assets, borrowing from friends and family and reducing costs.
In other words, when it comes to finance, a bank loan is not the be-all and end-all, and if you have to decline an application, you don’t have to come off looking like the bad guy. All you need to do is help your small business customers explore the many other options of raising cash.
The below article looks at microfinancing and how SMEs can take advantage.
Read the full article at: www.entrepreneur.com