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: Most of my friends are telling me that I am crazy to want to start a business in this economy. What do you think? — Tran
A: There is an old adage that says your income is usually about the average of the incomes of your three closest friends. So, the first thing to consider is, are your friends that are giving you this advice making the kind of money that you desire to make? If your answer is no, then what value should you place on their advice? Secondly, they are dead wrong. Some of the most successful companies and ideas have been launched in tough times. Just before the great depression Read more