Every time someone starts a conversation by asking “what is your interest rate” I should just hang up. The chances of me doing business with them are slim. They are either looking for a “bank like” rate and shopping around or I will explain the facts and never get a call back. [continue reading…]
Today, all SME lenders begin their application process by checking the business owners personal credit score. Whether applying for $10,000 or $500,000 if the number is too low the applicant is declined. If the number is high enough there could be an approval within hours and a payout within days. [continue reading…]
I do not like the term SME (Small to Medium-Sized Enterprise). It sounds derogatory when some people say it, and far too broad to provide any value to anyone for anything. In Canada 98% of businesses are SMEs. What is the value of a category if nearly every business is included?
Business finance professionals HATE having to constantly ask for updated financial statements and business owners HATE being asked. Underwriters on the other hand LOVE financial statements and spend hours pouring over them. The subsequent report they write can have a significant impact on the future of the business. [continue reading…]
TIME is the Most Valuable Business Asset
The first question that most lenders ask is “how long have you been in business?” If the answer is not “enough” they might not even look at the application. Questions like “what is your background” or “what does the future of your business look like” never get asked. Without TIME in business many business owners feel left on their own. [continue reading…]
So many different scenarios could play out in 2021 that we are certainly heading into unknown times. Business owners should be ready for anything and prepared to act quickly. Now is the time for them to look closely at their cashflow and working capital needs and as business finance professionals we need to prepare for when they do not. [continue reading…]
I have been involved in a lot of business finance transactions so now when someone says, “I’m looking for investors” I cringe and try not to say, “don’t do it”. I have seen too many good people with a good business unable to make the best decision at the right time for their business. Once a piece of Equity is sold then full control of the business begins to erode. [continue reading…]
It is a time of change in the world, as I personally experience my own and embark on a new role as a Business Finance Guide. Instead of lending to small businesses I will now help them borrow. My knowledge and experience in alternative business financing, along with the connections I have made, puts me in a good position to help guide business owners as they venture into the unknown. [continue reading…]