As a small or medium sized business, the capital markets have tightened up considerably since the start of the current recession and as a result, the typical sources of money that you tried to borrow from are either not there any more or they are not lending money, or at least not to you.
The business financing process has gone underground in many cases with more of the debt financing extended on a daily basis coming from private lending and personal lending sources.
And if you’re in any type of financial bind or time crunch, forget any form of traditional business financing options as the requirements will be steep and the time period potentially lengthy.
The Best way to deal with all of this is to first always apply for financing when you’re in the best financial shape, whether you need money or not. This may sound counter intuitive, but it does make sense when you closely review how banks and other institutions make lending decisions.
Trying to acquire a business loan when you’re struggling or behind is asking for financing at a point of weakness which is almost always (or at least these days) an automatic no go so consider this when you are planning out your future cash flow needs.
