Recent economic turmoil has dramatically changed the availability and supply of business financing. Business owners are faced with the need for new equipment to grow their business and the continuous shrinking of available financing options. Fortunately, there are companies that have money to lend.
That being said it’s important that all business owners understand the current state of the credit markets. Gone is easy money of a few years ago without documentation, gone are the low single digit interest rates of recent years, and gone are most same day approvals. Credit standards have increased significantly, approval times have lengthened and collateral values have fallen.
Getting Financing to Grow a Business
• Review credit scores and make sure there are no mistakes.
• Apply for credit early. The process takes longer than it has in the past. If shopping at an auction get pre-approved a week in advance. If searching for other types of equipment apply shortly after deciding to purchase new equipment, do not wait until the equipment is ordered.
• Do not shop financing. It is never a good idea to apply for credit with multiple financing companies. Doing so lowers credit scores and raises a red flag to funding sources. Pick one financing company and let them provide a solution to your funding needs.
• When applying for credit have business bank statements and tax returns available prior to applying for credit. Significant time is lost waiting for documentation during the application process.
For more information, call Kevin Carney at 484/947-5488 or Michael Moretti at 610/566-1174 or visit www.AristoncapitalLLC.com.
(Ariston Capital LLC contributed to this article.)
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