Small Business Capital Solutions

Known for Integrity and Reliability



The Top Ten Challenges - and Solutions

Having difficulty obtaining a loan for your business? You are not alone! The lending environment has become so fragmented over the past several years that many of our clients tell us that the lenders whom they formerly could rely upon are suddenly and inexplicably unable to assist them. Small Business Capital Solutions exists to help you find funding for your important projects and working capital needs. Because of our 30+ years of experience in lending, we can assist you in putting your request together in a format the lenders will relate to, and while we are doing most of the legwork, you can stay focused on your business.
One solution we often consider is the U.S. Government Small Business Administration loan programs. SBA Loan Programs have been an attractive solution before, and they are even more attractive now:
  • Low Interest Rates - The maximum interest rate an SBA lender can charge is typically Prime + 2.75% - that is only 6.0% today (update as of Aug. 2013).
  • Little to No Prepayment Penalties - There are no prepayment penalties on loans less than 15 years in term. The prepayment penalties are very moderate for loans over 15 years in term, and even then, only apply during the first 3 years.
  • Longer Terms - Loan terms can be up to 25 years for real estate purposes, up to 15 years for equipment, and up to 7 years for working capital.  SBA loans are full-term, fully amortizing loans – no more “balloon” payments or worries that the lender might not renew you loan when it matures!
  • Simplified Structures – Loan purposes can be combined and the loan term blended according to the use of proceeds. Instead of a separate loan for each piece of equipment, a loan for real estate and a loan for working capital, all the loans can be combined into one, making your accounting far simpler.
  • Improved Cash Flow - An SBA Loan normally involves less money down from you, and gives you a longer period of time to pay it off than with a conventional commercial loan. Less cash out at the front end and lower monthly payments translates to added flexibility with your cash flow, and often a better return on your capital.
  • Better Security - The government guarantees up to 80% of the loan amount, meaning many lenders will be more comfortable in approving your project, and more interested in maintaining an ongoing relationship with you and your business.
Yet none of these benefits will become meaningful unless we can obtain the funding you need, and we face the same challenges that you do. The difference is that we have been facing these challenges to greater and lesser degrees over several recessions and various segmented industry cycles. Getting a loan today is no longer a sprint, but more like a marathon and you simply cannot get into the race unprepared. Whether an SBA loan or a conventional loan, here is how we at Small Business Capital Solutions view the Top Ten Challenges that we and our clients face:


Challenge #1:  Banks are being Highly Regulated.  Your loan request will be scrutinized by the lender’s underwriting team from all angles to ensure it is low-risk.  To help overcome this obstacle your loan package should be completed professionally in order that all the subtle things that the lenders look for are addressed and properly documented. Consider using Small Business Capital Solutions – Assisting you is what we do.
Challenge #2:  The Bank’s Loan Requirements are Cumbersome.  Because of the heavy regulation, lenders are asking much more of their clients than they have in the past. If deterred from a conventional loan, many business owners do not even consider an SBA loan because of the amount of detail and “red tape” involved.  We can help by filling out a lot of that paperwork. Name a form – we’ve got it!
Challenge #3:  The Loan Process is Consuming a lot of my Time. We understand that time is money for you, and when applying for a loan without the help of a professional loan consultant, you and your colleagues will become distracted from the things that make your business operate at full efficiency. Instead, just send us the items on our concise checklist and leave the rest to us! Remember that by utilizing us, you can stay focused on your business, knowing that Small Business Capital Solutions will not earn its success fee unless you get the funding you need.
Challenge #4:  Loan Products can be Confusing. Some of our clients become baffled by all the various loan products presented to them by lenders, and wind up accepting what works best for the lender instead of what would work best for them. Small Business Capital Solutions can restore clarity to your situation, and by drawing on the depth of our experience, fit the best product with your particular needs. Don’t accept “bank policy” as the rule. Instead, ask us to assess your financial needs and provide you with alternatives that are better suited to you goals. Ultimately, the final decision will be yours, and we understand that is how it should be, always. Our only “policy” is to honor your choice.
Challenge #5:  My Bank has adopted a “Revolving Door” Policy. Faced with mounting pressures to their bottom lines, many banks have shown their more experienced lenders the proverbial door. This is particularly true among the larger lenders, who have asked their branch personnel and “business bankers” to handle complex commercial loan products as though they were just another car loan. Others have offered their seasoned commercial loan veterans enticing severance packages, leaving their relationships in the hands of someone freshly promoted from the credit analyst team. Through no fault of their own, these well-meaning bankers might unwittingly steer you in the wrong direction. Using our many lender contacts, Small Business Capital Solutions cuts through this layer of bureaucracy, often getting your loan project right to a decision-maker.
Challenge #6:  What the Heck are all these Ratio Tests? The credit folks are running the show at most banks these days, and it seems as though most have adopted somewhat arcane ratio tests to “screen out” loans they cannot figure out how to decline any other way. It is as though you have been in a relationship for quite a while, and your significant other throws out that tired expression which is so extremely unhelpful: “It’s not you, it’s me!” Through years of trial and error, Small Business Capital Solutions has learned who these lenders are, and regrettably, we are constantly expanding the list. Not to worry. We perform the same ratio tests that lenders look at, and fit your project to those lenders most likely to put it through.
Challenge #7:  My Lender has developed an Allergy. Shopping for a loan these days can be like hunting for a particular needle in a big pile of needles. “We would love to help, but we aren’t doing _____ loans right now.”  Insert what you are looking for, perhaps. Maybe your project involves construction, a business acquisition, a restaurant, gas station, a motel, or a start-up business. These project types are the most challenging of all today. Lenders have become allergy-prone, and sometimes will develop the sniffles when you come to visit. Because of the volume of loans we can bring to their table, many lenders will consider our clients’ requests on an exception basis. We furnish them with a hankie.
Challenge #8:  My Lender has gone Comatose. Perhaps you are a business owner in the midst of a construction loan for a new office building. Your lender promised you a permanent loan upon its completion, yet his bank was taken over and that permanent loan is no longer available. He advises you to go find a new bank for the long term loan. Or perhaps the line of credit that your business relied upon for working capital has been greatly reduced or eliminated. Your lender has gone comatose, and the only thing you have to be thankful for is that you don’t have to decide whether or not to pull his plug. Small Business Capital Solutions is ready and able to move quickly to hook you up with a new lender. And yes, we prefer our lenders awake, too.
Challenge #9:  I gave them all my Stuff, and now they want a %*$$@# Business Plan! Business Modeling is more like an art than a science, yet, to be credible, a Business Plan must fit within industry norms; the Lender’s underwriter will employ the available data from your particular industry to evaluate your Plan, comparing it against the Industry norms. Writing a Business Plan is not only time-consuming; it can also make or break your project. Leave it to the professionals at Small Business Capital Solutions. We have it down to a science, and we do it artfully.
Challenge #10:  Now I need an Aspirin.  You probably have a lot of plates spinning at your office, and if you are also trying to juggle several lender-prospects at the same time, it can give you quite a headache. Why not hire the professional consultants at Small Business Capital Solutions to handle the paperwork and loan packaging of your loan request?

You can see from these Top 10 Challenges that it makes sense to hire the professional and experienced team at Small Business Capital Solutions.
We firmly understand both conventional and SBA lender requirements, and can handle all of the hard work for you.
Call us now and see how we can help.
Our initial Consultation is free . . . Contact us now so we may assist you!!