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WaterMaxLLC
11-01-2013, 07:26 PM
Does anyone know of a bank that will loan money to a small business? I have been to several of the big banks and it seems impossible to get any loans or line of credit.

Thanks,
Adrianne

vangogh
11-01-2013, 11:53 PM
I'm not sure it'll be any easier to get a loan from a small bank than a big one. Banks typically loan to business who they can be sure can pay them back, which is often businesses that don't need the money. I think now, given where the economy has been it might even be a little harder than usual to get a loan.

What do you need the money for? Maybe it's more a matter of how you present your case to the banks? How have you been asking for the loan or credit?

WaterMaxLLC
11-02-2013, 10:13 PM
We need to the money for growth. Some of our products need more testing. By performing more testing, we could open up new markets for revenue. But to be honest, my credit took a hit when I started the company in 2008. My credit is now right at 700. So I would like to try again for a loan or a line of credit.

I noticed that you are from Boulder, Colorado. I went to school at the University of Colorado in Boulder. I lived there for many years until I moved back home to Texas.

Twhansbury
11-04-2013, 02:58 PM
WatermaxLLC who do you do your banking with currently, work with them first. They know you and currently invested in your business and more likely to understand you and also extend credit. Are there any merchant banks you are working with currently?

vangogh
11-12-2013, 01:28 AM
If you need the money for growth that's another story. I assume your business has a history that shows it can make money. I would think if you could present the case well and show how the loan will help you make money it would be realistic to get a loan. How have you been presenting to them? I wonder if it's more to do with the presentation than anything else. I think the main point with getting a loan is convincing the bank that you'll be able to pay it back.

How long ago were you in Boulder? I live on the north east side of town now, but I used to live close to the university. For a year or so I worked up on the Hill and rode my bike through campus every day to get there.

Steve B
12-19-2013, 05:13 AM
Don't expect to get a loan or a line of credit for the "business". They really will be loaning you the money - meaning you will have to personally guarantee paying the money back regardless of the success of the business.

Sean_DeSilva
01-12-2014, 03:25 AM
if you have a decent amount of business assets to lend against, Union Bank has some unique asset-based lending programs to take a look at.

phanio
01-22-2014, 07:56 AM
Not sure that a business loan would be your best option for what you outlined. You should be using other resources like equity or earnings to testing your product and markets. Loans are leverage - you leverage current revenue in a lump sum amount (called a loan) to generate even more revenue - enough revenue to repay the loan with interest and fees as well as enough revenue to handle these things that you are trying to accomplish. You never use a loan for something that does not directly generate more revenue or at least generate an equal amount of cost savings.

Best bet - find another way to test your product and your market.

If you still want a loan - you might have to look for loans other than traditional business loan like alternative loans that leverage financial assets, micro loan or even personal loans (which are easier to get). But, if you really need the funds, then it should not matter where the money comes from because after you get it - it all spends the same.

TheResourcefulCEO
01-25-2014, 07:08 AM
Alternative financing may be your best choice in the near term, but you will need to build a relationship with one or more banks to eventually take advantage of the lower interest rates banks provide. I highly recommend that you reach out to small, business-focused community banks in your city or geographical area. For these banks, small businesses are their bread and butter. Many of those on the board of directors of these bank are entrepreneurs. Do not just apply willy nilly for business loans at banks. Instead, focus on community banks and seek out an introduction to someone at a Vice President level or higher. Branch managers have little (typically $25,000 to $50,000) signature authority. This is the amount that they can approve without going up the food chain. VPs typically have signature authority of up to $250,000. Even if the bank operates on a committee approval system, the VP's recommendation carries much more weight.

You can network through LinkedIn, your church, organizations and associations you belong to. You want an initial introduction which leads to a meeting. When you get the meeting, bring a 2-5 page Executive Summary of your business. This shows the VP that you know your business and are prepared. You may not get a loan immediately, but you will lay the foundation for getting a loan within the next several months. If you impress the VP, then s/he will tell you what they need from you or your business or where your business needs to be to obtain a loan. If the first bank relationship does not pan out immediately, pursue another one while cultivating the first one. Make your business banker a key component of your networking strategy and you will get your loan.

MattSmith
02-23-2014, 02:56 PM
Have you looked into alternative financing? That may be a good place to start. You should also look into seeing if you qualify for any grants, or possibly check into crowd-funding.

Check out SBA.gov, they have a lot of listings of Lenders.

mrphuntt
05-08-2014, 12:01 PM
Hi WaterMaxLLC, I just joined this forum yesterday. Good comments above on your question. I think the picture today is actually better than a lot of folks may be aware. The availability of business funding options after 2008 went way down because the banks took big hits, got saved, and then kept the money real tight. That situation however forced the supply side of the market to get more creative since the demand side didn't change (or got bigger actually). I work with a company that does nothing but fund small business needs, for both start ups and existing businesses, and the funding covers every imaginable need that a small business owner might ever have. They have around a dozen different ways to help put funding together, ranging from revenue based loans, to new credit lines, to crowdfunding and lots in between. Do you still need funding or have you solved your current need? I could put you in touch with our finance folks. By the way, since I'm new to this forum, is it OK to offer help this way? I just want to be open and honest about this. If I refer you to the company I work with, and you and they work out an agreeable funding deal between the two of you, then I would get a referral commission at the end. They are a very reputable company.

CallBettie
06-23-2014, 01:46 AM
I have a friend who does SBA loans and he's said most banks want to collateralize your assets against the loans. If you don't have assets you'll need to get a personal loan.

WhoDoesSBAloans
08-31-2014, 02:12 PM
If you're going to go with SBA financing, you can approach the local SBA offices and ask some of the business development officers which lenders are active in doing certain type loans. For instance, there is a bank that dominates in doing loans for dentists, veterinarians, doctors and funeral homes nationwide and they probably do more than the next five banks combined. It's the same thing with most of the larger type businesses like hotels, restaurants, etc. There's always a few lenders that are dominating the space, even though the players will usually change every few years. Some of these lenders don't want to do a loan unless it is fully collateralized. You can also do a FOIA (Freedom Of Information Act) request through the offices in Washington DC. They will only give you a compilation of the past 25 years (used to be different and you could do customized searches) but you can look through SIC/NAICS codes to see who has done specific asset classes and businesses.

webdesignphx
09-16-2014, 12:24 PM
The best bank is an oxymoron! haha

But we use Chase because it has the check depositers you can use from home.

LianaCCB
12-08-2014, 03:52 PM
If you are still looking for financing, consider a business credit broker. My clients are predominantly start ups or real estate investors looking for capital, and not finding it with the big banks or SBA loans (too much paperwork and red tape). Business credit cards are not a long-term solution (just like personal credit cards) but your personal credit won't take a hit while you have some financial wiggle room.

TejasWebHosting
01-06-2015, 04:28 PM
You will first need to have assets, or consider a personal loan. Otherwise, your last option is venture capitalists. You really must first prove that the company is worthy of a loan by showing proof of your product/company earning and sustaining profits. Maybe try visiting SBA.gov

smallbizfinancier
01-07-2015, 08:07 PM
Adriane,

In general, for small business funding, the SBA is a bad source for capital for the entrepreneur. I'm assuming you're stateside and in that case, the US government backs loans up to a certain percent so that if a small business owner fails to perform on the debt obligation, the bank isn't left holding the bag. Because the bank is almost taking 0 risk, one would think that they would be more agreeable to what businesses and what credits fit their profile or credit window. And though one might think that way, one would be sorely mistaken. The US sets rules to for this space and if a bank is found to have gone outside the lines in their lending decisions, they're penalised.

With that said, there are many SMB lenders in the US. I would start with companies like OnDeck Capital (http://www.ondeckcapital.com) who recently went public. While I'm not sure if they accept online applications directly, they certainly accept brokered paper from lenders like Bank of Cardiff (Bank of Cardiff | Bank of Cardiff (http://www.bankofcardiff.com)). I've colleagues who currently work at said firms and know quite intimately about their lending card.

Feel free to PM me for more information, or I'm happy to keep the dialogue going on the page for others' benefit. If you could tell me/others a little more about your TIB and revenues, I could advise you with more details.

Cheers!