What's The Deal?
Maybe it's because of the debacle at Bank Of America.
Maybe it's because of the mortgage crisis last year.
Maybe some of the banks that are too big to fail are in bigger trouble than we think. Maybe Robert Reich is right. His article.
I received a call today from a commercial loan representative at a major local bank here in Cleveland.
I have sent him most of my franchise candidates over the years, and he has been able to help them secure some terrific financing for their franchise start-ups.
We discussed the current commercial lending climate, and when I asked him about how his bank is looking at start-up franchises, here was his response;
"Joel, their not."
After I picked up my dropped jaw, I asked him what their reasons were. His response;
"Their just not looking at any start-up businesses, franchise or not."
I told him that….Actually I said nothing except, great talking to you, best of luck, yada yada yada…
I do have my own business to run here, you know. (Angry) It relies on folks who will be applying for commercial SBA and non-SBA loans to start businesses of their own. You know, the downsized of America who are sick of doing a high-level job search every 2.8 years. The ones who contact me, or who are referred to me by folks like her, her, and them.
There are other ways to finance a start-up business. A local bank is just the one that makes the most sense. (Usually)
So what are prospective small business owners doing to get funded?
A couple of folks I have helped get into business have done this.
Some are using their credit cards. More and more.
Here's what was written at CNN.com;
"Credit cards have always played a big role in helping entrepreneurs
get new ventures off the ground. What's changing, analysts say, is that
other options are disappearing."
"The number of small business
loans for $100,000 to $1 million fell 23% in 2008, according to an SBA
analysis released in May. But the number of loans under $100,000 rose
16%. Charles Ou, the report's author, attributes most of that increase
to an increase in credit card accounts."
Please finish the great article over at CNN.com, and then come back and share what you have done to find funding for your start-up or growing business below.