Posts Tagged ‘banks’

Small Business Lending: Where Manufacturers Should Go When The Banks Say “no”

The good news: Most manufacturing companies expect growth opportunities in the coming 12 months. According to the 2010 CFO Outlook, published by Bank of America, 69% of manufacturing company CFOs are considering financing in 2010, up significantly from last year. The top two reasons for small business financing are working capital and capital expenditures.

The bad news: Two years ago, getting six-figure traditional financing for a smaller manufacturing business was fairly straightforward. Today, it remains about as difficult as when the financial crisis first began to unfold. Banks are as reluctant as ever to finance small businesses, as they continue trying to limit their risk amid the economic turmoil. According to the FDIC, the volume of bank loans dropped in 2009 by $587.3 billion, or 7.5%, from 2008—the biggest full-year decline since World War II.

The result: Many small manufacturing companies are either struggling to stay afloat or finding it difficult to capitalize on upcoming commercial growth opportunities. According to the 2009 Year-End Economic Report published by the National Small Business Association, 39% of small businesses report they are unable to get adequate financing for their business. No doubt many of these are manufacturing companies.

So where should smaller manufacturing companies go to get the financing they need? The answer is to the most experienced and competitive private banks and alternative lending groups for small businesses.

Alternative Financing Options: Unlocking the value of your assets

If you’re a manufacturing company, there is simply no need to let your business be held hostage to the ongoing credit crisis. This is because there is already a well-developed market for alternative lending that can provide working capital for small businesses with assets. Loans can be secured against cash flow, accounts receivable, inventory, purchase orders, premises, machinery and equipment, and even the intellectual property associated with a brand or patent.

What many businesses don’t realize is the extent to which they can leverage their business assets to secure funding. Help for small business lending is not on the way: it’s already here. Alternative financing options can help many businesses get the backing they need when the banks say “No.” Best of all, this type of financing is now affordable. Loans from the most competitive private banks and small business lenders are priced at bank-like rates upwards, depending on the level of risk of the business being financed.

Securing traditional financing through banks and other financial organizations has now become highly challenging. As banks pull back more traditional commercial-and-industrial lending, they are no longer willing to lend even to small businesses with solid financials. Their security demands have also increased. This has pushed some companies to distress. It is preventing many others from taking advantage of commercial growth opportunities that lie ahead.

Unsurprisingly, businesses are increasingly turning to suitable private banks and other alternative lenders for small businesses. According to Bank of America Business Capital, 49% of manufacturing firms expect to use asset-based lines of credit in 2010, up from 42% last year. This type of alternative financing, once considered a last-resort option, is now regarded as a fundamental financing solution. Since alternative lenders in this space generally focus on collateral rather than credit-worthiness, they are able to do deals that more traditional lenders shy away from.

Getting the financing you need

When times are difficult, unlocking the inherent value of your assets, especially intangible assets, is attractive. Today, small business financing is affordable, offers flexible loan structures, and can provide the borrowing power that cash-flow lending alone may no longer be able to supply. At US Capital Partners, for instance, businesses can borrow money using their liquid, current assets or their fixed assets as collateral. Our small business loans are priced competitively with cash-flow loans, and come with fewer financial covenants. They can be used to secure working capital, but also to finance growth or acquisitions.

Getting the right financing can make all the difference for a small manufacturing business. Earlier this year, US Capital Partners arranged and co-loaned a $3.5 million senior secured credit facility for Consensus Orthopedics, a medical artificial joint implant manufacturer and distributor. The new credit facility included a revolving line of credit for both domestic and international assets along with a growth capital term loan to support the company’s continued domestic and international expansion.

It is important that your small business lender is able to provide you with service that matches your company’s specific needs to appropriately priced capital. It can also be helpful and cost-effective to work with a firm that not only arranges asset-based financing for small businesses, but is also able to offer funding—especially in situations where they can provide additional sources of capital from their own fund to “fill the gap” in your required capital.

If your manufacturing company is struggling to stay afloat or finding it difficult to capitalize on upcoming commercial growth opportunities, know that there is new and affordable financing available despite these tough times for small business lending.

If you would like to know more about how your business can secure the funding it needs, visit http://www.uscapitalpartners.net or call (415) 882-7160.

Banks and Small Business: Many Missed Opportunities Online

Banks and Small Business: Many Missed Opportunities Online
New Report Ranks Ten Biggest Banks for Small Business Prospect Online Experience

Read more on PRWeb via Yahoo! News

Where Do You Go When Banks Can?T Give Your Business A Small Business Loan When You Need It Now

If you are like so many businesses who are tired of hearing no from traditional financial institutions for immediate cash, it sounds like you may need to rethink your funding resources.

Instead of tearing your hair out looking for a <a title=Small business loan at Innuity funding! rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=http://www.innuityfunding.com/page/1ny5i/Resources/Small_Business_Loans.html>small business loan</a> and thinking there is no other way, broaden your horizons. There are several smaller funding sources out there that may be small in size but not in funds. Smaller investment companies that are not owned by a corporation can be the perfect resource for small and medium sized businesses. These companies are often made up of entrepreneurs themselves and so they know exactly what small and medium sized businesses are looking for. These smaller investment firms understand the need for excess capital is a time sensitive issue- where any delay may be crucial to the continued operations of your business; which is something that banks are not often aware of, nor take into consideration.

Whether you need a small loan or a larger loan, if you are able to present a business plan, your projected financial growth and qualifying credit, it shouldn’t be much more than a couple phone calls and emails to get the capitol you need.

Besides expanding your business, there are several reasons to look into <a title=Small business loan at Innuity funding! rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=http://www.innuityfunding.com/page/1ny5i/Resources/Small_Business_Loans.html>small business loan</a>. For example:

• Piece of mind having extra capitol incase of emergencies
• Upgrade computer equipment or office chairs/cubicles
• Temporary assistance in payroll
• Launch a marketing plan

Even in these tough economic times, there are silver linings even in the darkest clouds. Look to local investors and self -owned funding companies to help you get the funds you needed yesterday today.

Your bank’s been acquired: Should you stay?

Your bank’s been acquired: Should you stay?
If your bank is under new ownership, consider these six factors when deciding to stay or go.

Read more on Bankrate.com via Yahoo! Finance

Business : Consider Potential Of SMEs When Giving Out Loans, Banks Told

Business : Consider Potential Of SMEs When Giving Out Loans, Banks Told
SHAH ALAM, August 2 (Bernama) — Financial institutions should consider the potential of small and medium enterprises (SMEs) and their cash flow when providing loans, Second Finance Minister Datuk Ahmad Husni Mohamad Hanadzlah said on Monday.

Read more on Bernama

Business Financing without Banks Update

While the original thought for “business loans without banks” could be explained as “this is something that most commercial borrowers should take a look at”, the updated advice is “all business owners will need to do this sooner or later”. There are a number of earlier reports with strong suggestions to pursue business finance services that do not involve a traditional bank starting about five years ago. There are now new critical factors that have entered the scene, and the old reasons for this business financing perspective are still valid as well.

Wanting to find commercial loans without involving banks must certainly be an outgrowth of how unpopular banks have become in the current distressed economy. Thomas Jefferson is credited as the source of an early observation that seems to be more relevant than ever today (“Banking establishments are more dangerous than standing armies”), especially when viewed in combination with reeling economic conditions. In the contemporary setting, banks have undergone many structural changes that have nurtured a desire to leave bank relationships on hold.

Because of specific legal restrictions, banks cannot file for bankruptcy in the way that General Motors did but banks have still changed just as dramatically as if they had. Except in paid advertising, it has become even more rare for either businesses or individuals to speak positively about their bank, but many of us still have warm feelings about earlier banking days. The stories about giving toasters away have unfortunately been replaced by foreclosure and credit card abuses.

Inadequate external controls do seem to be a problem when banks are allowed to mismanage financial derivatives, and this has turned out to be an ideal illustration of banking in its darkest hour. While it is apparent that many politicians and bankers feel that the public does not deserve to ever know the real truth, more experts have come forward to talk about what a close call it really was (and most of these individuals also emphasize that we are not out of the woods yet). Perhaps Thomas Jefferson really did know what he was talking about when he observed how dangerous banks can be.

While there are more examples than we have room to talk about in a short article such as this, small business owners usually have two major reasons to avoid banks for their business loans. One is looking backward at how banks have performed and deciding that they deserve better. As one example, most commercial borrowers are aware that bailouts funded by taxpayers have not resulted in a normal level of small business financing.

With the second reason, just as nobody will knowingly go on a cruise ship if they are told by someone they trust that it is likely to sink, the increasing number of bank failures should serve as a cautionary signal to commercial borrowers. This concern is compounded when small business owners realize that very few of the still operational banks are consistently providing small business loans. If their bank is not up to the fairly normal task of offering business financing to them when they need it, a prudent borrower must be prepared to take their business elsewhere.

A clever approach to marketing the concept of business loans without banks is generally built upon a variation of the good cop and bad cop by merely comparing a “good” lender to the “bad” banks. To ensure that the main point (avoiding banks) is not overlooked, some lenders are using business financing slogans like “Think outside the bank”. Whether or not the advertising approach is convincing to small business owners, the ability to obtain commercial loans without bank involvement can help small businesses to prosper both with and without banks.

Cable tells banks to increase lending

Cable tells banks to increase lending
BANKS will face renewed pressure from the Government today to increase lending to hard-pressed firms. (26/07/2010 08:22:13)

Read more on Yorkshire Post Today

United Community Banks, Inc. Reports Net Operating Loss for Second Quarter 2010

United Community Banks, Inc. Reports Net Operating Loss for Second Quarter 2010
BLAIRSVILLE, GA–(Marketwire – July 23, 2010) – United Community Banks, Inc. ( NASDAQ : UCBI )

Read more on Marketwire

Banks Seek to Keep Profits as New Oversight Rules Loom

Banks Seek to Keep Profits as New Oversight Rules Loom
The ink is not even dry on the new rules for Wall Street, and already, the bankers are a step ahead of everyone else.

Read more on New York Times

Summary Box: Small Banks Struggle Despite Bailouts

Summary Box: Small Banks Struggle Despite Bailouts
Summary Box: Bailouts designed for Wall Street may be hurting small banks, watchdog says Wall Street – Elizabeth Warren – Congressional Oversight Panel – Business – United States Department of the Treasury

Read more on ABC News