May 15, 2012

Need Financing? A Bank Loan May Not Be Your Best Bet

financing small businessApparently only 16% of small businesses receive all the funding they seek through traditional bank loans.   An opinion piece in CNBC by Brad Kime highlights several of the factors that prevent small businesses from getting the funding they deserve. 

This includes, in Kime’s opinion, things like the fact that banks typically look at the personal credit rating of the business owner and don’t necessarily take into account the financial health of the business itself.  Combine this with the fact that it’s often hard for business owners, who are juggling multiple tasks simultaneously and may not have an accounting team at their disposal, to be able to prepare a bank loan document and supply the required amount of detail needed to present a complete financial picture.

The article has a bit of a sales angle but is a quick and easy read if you’re interested in learning more about what may be preventing you from getting a bank loan.

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