Comments on: Where to Find Small Business Loans

By: Trey Markel

Trey Markel — Fri, 15 Oct 2010 17:02:57 +0000

As these lending options are a great resource for consumers, I would caution all small business owners to think about personally financing your business before you do so. Mixing your business finances with your personal finances will most definitely lead you down a nightmare of a road. When tax season comes around you will have quite a work load on your hands.

Separating your business debt and finances from your personal debt and finances is something all small business owners need to focus on the second they are incorporated. It makes for a great asset in your business as your organization grows.

By: JS-SBLN

JS-SBLN — Thu, 12 Aug 2010 05:03:13 +0000

You definitely have to get creative these days. Just like any free market dynamic, when the credit crisis is on, peer to peer lending and other alternative means of financing will start springing up and becoming more popular.

Ultimately its up to the individual business owner(s) to respond to the rough economy and get creative by cutting costs, changing marketing strategies and seeking new means of funding.

And yes, ultimately only the strong survive, and I think they’ll pioneer new ways to stay afloat in the process (which the not so strong might be able to take advantage of and emulate.)

By: John

John — Wed, 07 Apr 2010 18:36:13 +0000

I advocate the peer-to-peer networking method, should finding a traditional merchant service prove too difficult.

By: Martin

Martin — Sat, 30 Jan 2010 23:34:39 +0000

Very interesting article! Not every small business can qualify for a bank loan, especially today. There are other options businesses can look into other than the traditional bank loan or a SBA loan. One good alternative is a business cash advance. It’s cash given up front to businesses when they need it, and is based upon the cash flow from monthly credit card sales charges. They don’t have to make monthly payments like with small business loans; instead small debits are automatically taken from batched credit card sales which will make repaying the money much easier.

By: John Shelton

John Shelton — Thu, 08 Jan 2009 00:13:37 +0000

The problem is that MOST small businesses CAN’T even get a line of credit to purchase normal things that make a business successful. And finding where to go is another hurdle. I got lucky and found Blue Dolphin National and they got me the Line of Credit I needed. Also they set me up with corporate leasing on ALL of my equipment so I could maximize cash flow. I have now paid off my LOC and it is there if I ever need it. If I didn’t get the credit I would be out of business. Now I am good and set up right.

By: jc12

jc12 — Wed, 19 Nov 2008 20:46:40 +0000

It is true that somehow businesses that doesn’t borrow is impressive. But at times, when the business needs to borrow, loan is the last resort. By doing this, the business is just meeting its financial goals by way of loans.

By: Jonathan

Jonathan — Fri, 07 Nov 2008 11:02:23 +0000

Small business is the lifeblood of most western economies and they account for around 53% of the business economy. Whilst the big companies get all the press and are being propped up by government it’s the small business owners that appear to be suffering and in the long term this can only be a bad thing for consumers as it means less choice and less competition. I think that the importance of lending to small business is even more important now than prior to the credit crunch and failure to do so will ulimately cost the economy. Whilst I do believe in a free market economy, we are in unusual times and letting small businesses go bust is not an option.

By: Pinyo

Pinyo — Wed, 08 Oct 2008 17:25:11 +0000

@PT – I agree that a business shouldn’t have to keep borrowing to keep itself going. However, the bad economy will be squeezing a lot of businesses that can otherwise prosper during a good economic cycle out of business.

For example, higher end restaurants and retail stores will feel the most hurt since their fixed costs do not go away. They still need to rent the space, pay various bills, etc. Sure, they could cut some variable costs, but that will only help to a degree. If you want your business to survive over the next few months, borrowing may be necessary. Your hope is that the economy will recover enough for your business to become profitable again.

Of course, there will be some businesses that you may as well walk away from. In the end, these business owners will have to do their due diligence and risk assessment before moving forward.

By: PT

PT — Wed, 08 Oct 2008 17:15:28 +0000

First, I’m a big proponent of small business. But if they need to keep borrowing to keep the business afloat, should they be running this business? Seems like a big fail to me.

I understand some businesses need a flexible line of credit to keep things moving along as the pendulum of profits swings, but if you’re constantly borrowing then you’ve got a real stinker of a business on your hands.

That’s why I don’t understand this credit freeze thing. Who cares if they can’t get money. They shouldn’t be doing business if they can’t turn a profit and hold a little cash. The cream will rise to the top, right?

Sorry for the rant. I know this topic of lending is more complicated than I understand.

Great post on tying in the peer-to-peer lending aspect.