If traditional funding sources are consistently making it harder and harder to finance Business Opportunities and Commercial Loans, are there other alternatives?
The answer is YES, you just have to look deeper into the transactions. The ability to look deeper is the key to being an effective loan broker. They should look at all the assets of a company and determine if there is another way to get the same results with a different approach.
Let me give you an example of what happened to us about three months ago. We were referred a client that was not a US citizen or a holder of a Green Card and he wanted to purchase a business with an SBA Loan. The problem is that SBA precludes lending to a non-US citizen. The client had the down payment for the purchase of the business, but we could not get him a loan.
But what we did was to get him an equipment financing loan for the vehicles he was buying, which happened to be equivalent to the requested SBA Loan. So by examining the assets of the business he was acquiring we were able to offer him financing of the same dollar amount but went about it differently.
Another source of funding for a biz op or commercial loan is to take a look at their accounts receivable or purchase contracts for work in progress. There may be the ability to leverage those assets as an asset based loan.
So tonight I want you to ponder other alternatives to traditional financing. View our website loanforbiz for further info on various other financing methods.
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