Q: I applied for a small business loan at my bank where I have been a good customer for many years and was turned down. I don’t understand. I have pretty good credit and money to put down. Why would they not loan me the money I needed? — Janice
A: The short answer is that you are fishing in the wrong pond. Despite our belief that banks are where the money is, banks are not where the money is lent. In fact, it is a surprise to most people to learn that banks have historically only provided seven percent of all business fundings! That means that even in good times non-bank lenders are the real funding providers for small businesses. And, in the current economy I estimate Read more
Q: Do I really need a business plan to get a business loan? — William
A: With few exceptions almost every traditional business loan source will require a business plan as part of the loan package. While non-traditional lending resources will most likely not require a plan, you would be double dumb not to complete one. Your plan should be developed and then used not only as a tool to getting funding, but also as a tool to assist you in determining just what funding terms your business can afford. Read more