According to Bernstein, before any economy can truly develop and reward its citizens, it must have Property Rights, Scientific Rationalism, Efficient Communication & Transportation and accessible Capital Markets. The availability of capital is a critical component for companies to grow, create products and employ its citizens.
It is a fascinating exercise to see how the combination of these four requirements has allowed other economies to flourish and to witness its impact on our own. However, when I take a hard look at how many of these four requirements are readily available to our clients, it is the last one, access to capital, that many seem to need more of.
It is not the fault of government policy, economic development or market maturity that is the cause of the problem, however. The blame lies squarely with our client, the business owner. Not out of specific intent, but rather ignorance of how to properly position themselves, or better said, their company, to have access to the capital they require.
While we are able to help well over 75% of our clients get most or all of the funding they require. Most business owners often accept a financing amount lower than they would hope for and at potentially higher rates that if they were better prepared with a stronger business credit profile.
Although thrilled to have even some capital, almost every client we work with would benefit significantly from a better understanding of how to position their company in advance of their capital need in order to maximize their funding amount and improve their financing rate as well.
My next six Blog entries will cover the following areas required for you to maximize your access to capital and enhance your potential financing rate.
1 – Proper business structure for maximizing capital
2 – Strategic use of your credit profile components
3 – Secrets to your bank relationship, the keep to great credit
4 – Financing you can maximize now
5 – Creating trade accounts to automatically build your credit
6 – Business credit accounts, the key to cheaper capital
I believe we can help change the landscape of small business financing and make more capital available to more business owners at better rates than exist today. My new executive summary: Capital Access & Rate Enhancement: How to Position your Company for Maximum Funding in Minimum Time, will be an important first step in this direction.
If you do not want to wait for the next several blogs or want more detail than these postings will offer, click here and my office will email your copy today.
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What advice would you have for a person in my position?
It would seem based on your post that it is the business owner’s responsibility to position themselves for success.
I have recently decided that I need to change my home-based business, because I have outgrown my space. Right now, I need to locate a physical location for my business, and I need the proper equipment to conduct my ‘professional’ classes.
In addition, I need to expand my business, and I have no cash to pursue my venture. What I am looking for is a small business start up loan, preferably an unsecured business loan. I’ve been having problems getting a loan because I don’t have enough collateral.
Can anyone offer me some guidance, advice, or even a reliable resource that will cater to a person in my situation?