Global Trends for 2013 Reviewed by Business Finance Network: A Diminishing Role for Banks in Financing for Small Business?

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Business Finance Network member and small business growth expert Joel Benton offers many alternatives to bank financing for business owners to get needed working capital.

Businesses still have options...(even) a business (that) has less than pristine credit...

Released in The Economist’s almanac of predictions is A top ten for business leaders providing a look at global trends for 2013. This list, comprised by forecasters Professor Thomas Malnight of the IMD business school in Lausanne and his colleague Tracey Keys of Strategy Dynamics Global, covers the 10 trends business leaders need to watch in 2013. The last trend titled “Who needs banks anyway? Reshaping the financial system reveals the challenge of an industry where “businesses want new means of financing” and that “banks may no longer be key players". While apparent that any significant decline in bank financing for small business owners would lead to changes in the industry, our role at Business Finance Network remains the same: to help small business owners by offering them proven financial solutions as alternatives to bank financing.

“Lenders are ready to invest, offering alternatives to traditional bank financing” according to Joel Benton, member for Business Finance Network, prominent growth advisor to small business owners. “Banks still may be slow to lend, but there are investors seeking opportunities to get a fair return on their idle funds. The difficulty is finding where they are and then knowing how to decide which option is best for your business,” says Benton.

Poor credit may not necessarily disqualify a business from obtaining the financing they need to buy equipment, take on new projects, hire employees, remodel, and invest in much needed marketing. Business Finance Network prequalifies each new client utilizing solutions from their network of over two dozen lenders. “By providing both unsecured and asset based loans, numerous options are available to help a business to grow and increase in value,” says Benton. While unsecured loans are based primarily on credit worthiness, asset based loans may also be used where the borrower has less than pristine credit. “Our lenders consider such things as value of owned equipment or average revenue,” Benton explains. “Wouldn’t you consider a financial solution on a transaction that may not require a personal guarantee?” he asks. A short prequalification form and brief conversation is all that is needed to determine which solution best fulfills a business’ need. The form is available for download on the Business Finance Network website.

An asset loan based on revenue includes the merchant accounts cash advance solution. Some benefits of this solution include repayment based on a fixed percentage of monthly credit card revenues and that the paid off amount can be re-borrowed. “Our merchant account advances 80-120% of the average monthly credit card sales. A few requirements are that a business accepts credit cards for payment and has been in business for at least a year,” Benton explains. Business Finance Network offers an additional merchant account advance that is based on total sales-not just credit card revenue. Other asset based solutions offered are the purchase of accounts receivables, factoring of receivables and purchase order financing and are all primarily based on the purchaser’s credit worthiness.

Have you thought of leases? Some manufacturers or distributors provide leasing for sales of their equipment. “If a purchaser does not qualify or leasing is not available through the manufacturer or distributor, lease financing is available through our lenders,” Benton states. “Also available is our sale and lease back option. In this case, existing equipment may be included as eligible collateral in the new equipment transaction, providing a source of needed upfront working capital,” he continues. Advantages to leasing may include no down payment, no financial covenants and payments may be tax deductible.

These are some of the many alternatives to traditional bank financing made available through Business Finance Network. “Businesses may get the working capital they need to not just keep their doors open, but to grow and prosper even during difficult economic conditions. Do not accept no for an answer. We have solutions,” offers Joel Benton.

Business Finance Network is a company that delivers options to small business owners for required financing. Whether a business is B, C or D rated, we get the ball rolling on many opportunities that otherwise might have been missed. To find out about your options, call (302) 539-4585 or go to http://www.BusinessFinanceNetwork.NET

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Gail Benton
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