Over the past five years or so (more or less the period constituting the “Great Recession”), the entire business financing/lending industry has been turned upside down! Changing roles for traditional lenders, new “alternative” sources of capital and changing expectations among business owners themselves have all served to shape a new (and many think better) business financing industry.
In the midst of all this change, there are things that you as a business owner should know about getting capital for your business—but may not. So we’re here to shed some light on three little-known facts about business financing to help you navigate your own course when the time comes.
A bit of background...
Most business owners know that over the past five years, banks scaled way, way back in lending to small businesses. But, did you know that from June 2008 to June 2013, small business bank loans declined by 27 percent? According to Business Week, this left untold numbers of businesses out in the cold in terms of access to capital. And even though banks have set new, higher goals for small business loans, many complain that underwriting requirements still exclude large numbers of businesses from getting credit. But at the same time, this dynamic shift has ushered in new “alternative” sources of business capital and an access to capital for growing businesses previously unseen.
Little-Known Fact #1:
Getting capital doesn’t necessarily mean getting a bank loan.
Businesses of all sizes, small, mid-size and even large, are finding ready access to loans and other types of business financing through new resources like BFS Capital. We offer business loans of varying sizes, from $4,000 - $2 million. And instead of requiring piles of paperwork, we look at the health of your business now: What’s your operating model? How is your cash flow? And most importantly, perhaps, How will this capital help grow your business? By approaching financing in this way, we’ve been able to provide capital to thousands of growing businesses across the U.S.
Little-Known Fact #2:
You can still qualify for business financing with less-than-perfect credit.
Business owners know all too well that any blemish on a credit record will probably disqualify you from getting approved for a business loan or line of credit from a bank. But getting financing from an “alternative” source like BFS Capital is something different altogether. We’re concerned about risk, no question. But our primary concern is the health of your business today. Are you paying your vendors on a regular and timely basis? Is your cash flow healthy? And, Are you in growth mode or poised for growth—and is it sustainable? The bottom line for us is this: Is your business likely to be bigger and better with an infusion of capital from BFS? If we think financing will not help your business move forward, we’ll tell you so. Not everyone will.
Little-Known Fact #3:
You don’t have to wait months to get capital for your business.
If you’ve ever applied for a bank loan, you know that just getting approved can take weeks. And then actually getting the funds can take weeks more. But the reality is that when businesses set out to get financing, it’s because they need it now, not three or four months from now. That’s why at BFS Capital, we have a comparatively simple, streamlined application process. We also do everything we can to move through the underwriting process as quickly as possible, too.
For these reasons and others, “alternative” sources of capital like BFS Capital are now very much mainstream. In fact, we think of ourselves as an important driver of the “new normal” in helping businesses realize their potential through growth and expansion.
Image courtesy of Stuart Miles / FreeDigitalPhotos.net