Conference Presentation, Panel, Fireside Chat
Small Business Financing Tips for 2017: Banks, Family and Additional Resources
- More than 50% of small business owners nationwide plan to expand within the next five years, while approximately 10% of individuals anticipate seeking lending within the next 12 months.
- Financial institutions express a willingness to lend, with traditional bank loans typically offering superior terms such as lower, fixed interest rates and fixed repayment schedules.
- SBA loans, which are guaranteed rather than directly funded by the administration, frequently require pre-screening that evaluates personal FICO, business credit, and financial data.
- Credit reporting agencies process roughly one billion credit entries monthly for Americans, where inaccuracies may occur and most negative items remain on reports for a seven-year limit.
- Commercial credit agencies track business payment behavior, which becomes a critical factor when securing financing for traditional loans.
- Business owners who fail to prepare for funding needs in advance often face expensive, unsustainable financing options when a crisis or opportunity arises suddenly.
- Borrowing from family or friends may yield low or zero percent interest rates, but such loans should be avoided if the lender cannot afford to lose the principal amount.
- Repaid loans in full and on time generally do not result in social awkwardness, and refinancing existing personal loans with traditional financing is possible through credit and business growth.
- Capital contributors may erroneously assume ownership stakes or entitlement to free business services; however, business plan execution is never guaranteed despite having a plan.
- Small business bankers with five to ten years of tenure provide guidance on expansion or acquisition, and early relationship building is recommended to ensure capital access within a couple of years.
- Free resources are available via in-kind contributions at local business plan competitions, workshops by SCORE industry leaders, and counseling at over a thousand small business development centers staffed by experienced advisors.
- Reliance on general internet searches, such as Google, carries a risk of receiving unreliable advice, whereas seeking professional counsel helps ease capital access.
- David Burch brings 20 years of experience lending to small businesses to the context of capital acquisition strategies.