You’ve got a pipeline full of projects ready to go in 2012. Your enthusiasm will not wane, and you shall not tire.
That’s what you tell yourself, anyways. Then you get to the unpleasant reality that the $100,000 fairy isn’t about to sprinkle some magic dust on your bank account. You’re going to need a small business line of credit this year. But where can you get it?
Entrepreneur comes through with an article all about the art of obtaining a small business loan in the year ahead. They have great advice on where to look and what types of lenders may struggle to come through for you when you’re in need of financing.
Small Business Loan Options
Angel investors are coming out of their shell, which is appropriate given that we can only see the recession in our collective rearview mirror at this point. Ditto venture capital firms, which are perfect for start-ups, and even small community banks that are beating their larger cousins to the punch.
I should mention that Direct Capital does offer small business financing, and our ability to lend is growing exponentially every year. You’ll want to do your homework, of course, but I hope you’ll check us out along the way.
The key, as always, is to research your options and find a lender you can really trust. When you really need a small business line of credit to get that new piece of equipment or remodel your aging shop, you don’t want it to become a weight that drags your business down. You want it to be an opportunity.
Where Not To Turn
Big banks, in a nutshell.
Lending levels from your larger banks have not returned to normal despite the economic recovery, and they continue to raise fees on small businesses. When you consider that you probably will not find your best rate or terms on a small business loan at these banks, you can understand why you’re rolling the dice big-time with a big bank.
While the Small Business Administration continues to lend, you’re going to find it tougher to find smaller loans. According to Entrepreneur, the number of loans under $250,000 that were doled out by the SBA rose just 13 percent in 2011. You can probably find a small business line of credit more easily somewhere else, unless you really need something larger than $250,000.
So there’s a brief look at where to turn and where not to turn for small business loans in 2012. Share your own ideas and thoughts on this list in our comments!