The current lending criteria in today's financial climate can be particularly challenging for small business borrowers. For the borrowers, an increase in rates can be a real hurdle to obtaining any sort of finance. Established enterprises with a long history are finding it challenging to invest in the growth and expansion of their business. Updating to new technology can require a significant injection in capital funds that many operators may find hard to get their hands on.
Here are some ideas for easier small business financing.
Visit a broker – Small businesses should increasingly look to use brokers to organize their financing rather than going directly to banks. Brokers usually have a better understanding on the types of financing available and better access to a wider range of loans. They also have established relationships with lending institutions that many small business owners may not be aware of.
Lease equipment – instead of applying for a loan, equipment finance and leasing can help a business upgrade their technology and help to cover operational expenses. Many businesses may not be aware that leasing can extend beyond IT equipment finance and is available across a range of industries including medical, veterinary and industrial as well as for most office equipment.
For many these operators, speaking with a financial advisor or accountant will give them a better understanding on the type of financing that is available and how they may be able to account for their expenses in a cash-flow friendlier way. Borrowers looking to get out of the cold in the current lending climate can find a number of ways to get on with their business.