Commercial Finance Brokering & Advising

According to the Federal Reserve Bank of New York’s Small Business Credit survey only 36 percent of small firms with annual revenue between $250K – $1M have been able to attain all the financing their small business needs.

Making matters worse, 50% of small businesses with less than $1M in annual revenue report they were unable to attain any business financing. This shows that lending options available for small business owners are limited at best. But do the small businesses limit themselves by looking for financing in the wrong places?

Microbusiness fares even worse, with only 25 percent of firms with annual revenues less than $250K saying they received all the financing they applied for in 2014.

Making matters worse, 50% of small businesses with less than $1M in annual revenue report they were unable to attain any business financing. This shows that lending options available for small business owners are limited at best. But do the small businesses limit themselves by looking for financing in the wrong places?

If you are one of the lucky small firms that were able to get all the financing they need, then traditional bank business loans are the best type of commercial financing available for small firms.

But, if you were unable to find financing at a bank (or other kinds of SBA lenders) then maybe you’ve been limiting your options.

According to this same New York Federal Reserve study, nearly 60 percent of small businesses with annual revenue between $250K – $1M submitted an application with a bank. At the same time, only 18% of these small business owners submitted an application through an online business lender.

As for micro business, nearly 3 in 10 small business owners submitted an application to get a loan from large banks, regional banks and small or community banks. At the same time, only 19 percent of small firms with annual revenues under $250K sought financing from online business lenders.

Start by looking in the right places. If you are unable to obtain traditional bank financing, give a SBA small business loan a try. SBA 7(a) small business loan enhancements reduce the commercial lender’s risk through government guarantees. If the borrower doesn’t pay back, the government will cover a large percentage of the business lender’s losses. This encourages the commercial lenders to provide financing to business owners with marginal credit.

If a business owner doesn’t qualify for traditional financing, the internet is full of alternative small business lenders. Trying to figure out which is best for your business’ goals can be confusing.

In short: expand your financing options by researching the types of commercial financing available to businesses like your own. But always be realistic, as lenders only care about one thing: getting paid back. If they don’t feel they’ll be paid pack, then they won’t lend you money.