Capital Strategies

Like to open another business and hire people to do work. My concept works. Getting a business loan from a bank these days takes preparation, patience and at least 20% of the cost to purchase the business in your own cash.  The preparation part should include a well developed and researched business and marketing plan...plus financial projections. If you don't know how to do this (or don't want to) find a competent professional to help you.  Accountants, consultants, and business brokers may provide the resources you need. You will need to "paint a picture" for the banker regarding the business you'd like to open or purchase.  Additionally, you'll need to "sell yourself". Prepare a resume with your past relevant experience (relating to business ownership, managment, leadership). Don't go in and ask the banker "How much can I get?"  Figure this out before you go.  Nothing says 'greenhorn' like this question.  You want t...

As a former commercial lender, I'm appalled that bankers are forcing small businesses into bankrupcty rather than doing a workout. According to Business Week, business bankruptcies are up more than 40% over last year. ( see article "As Bankruptcies Surge Fewer Emerge" ) Banks have "fragile" balance sheets right now. Here's why: They reduced their credit standards to follow the crowd. Now they are paying the price. Just like small business owners are paying the price through reduced sales, profits and access to credit. I've personally noticed that the unwillingness to work out of problem situations is especially true of the large banks. The locally owned independent bankers are much more likely to work out payment arrangements with business owners. Probably because the decision-makers live in the community in which they serve. Its more difficult to be hard-hearted when your neighbor, club member or friend is requesting that you help him save his busi...