MONEY
When Your Loan Request is Turned Down
your business well enough to take on
the extra risk, there are other sources
of capital that do, such as suppliers
and mortgage companies.
If you’re a reliable customer, your
suppliers may give you a little more
time to pay your bills. Many will be
flexible enough to allow you an extra
60 or 90 days interest-free, provided
that they can expect more purchases
in the future.
And if you own your place of busi-
ness, try negotiating a three month
moratorium on payments. Since
mortgage companies know that they
can expect decades worth of pay-
ments from you, a few months with-
out payment won’t be worrisome. In
order to convince a lender to grant a
moratorium, be prepared to explain
Do you have a plan for success?
the circumstances that have left your
business short of cash and why you
believe these conditions are short- • Business Plans
term.
• Investor Presentations
Lastly, asset-based lending is an-
other good source of financing. If
• Business Guidance
you’re in a business that carries an in-
• Affordable
ventory, Asset Based Lenders (ABLs)
• Compelling
will use it as collateral against a cash
loan. The downside is that interest Free
and fees are usually higher, because
30 minute
ABLs need to track your assets more
Consultation
carefully than a bank. It’s not uncom-
mon for an ABL to check your inven-
tory weekly or even daily.
Sources: When Banks Say No: Your best fi-
nancing alternatives in four common sce-
www.VentureStarter.com • 703-243-8456
narios by Jim McElgunn and www.sba.gov
June 2009 1
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