Small Business Lending in a Cold Climate

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…

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.