Finance Strategies: Overcoming The Limitations Of Traditional Lenders
At BG Capital Funding Group, we frequently get calls and emails from business owners about finance strategies. In many cases, small and growing businesses that have reached the lending limits with their banks or other financial institutions are looking for new solutions to help them reach their goals. Fortunately, there are a number of options available to entrepreneurs who are trying to reach the next stage of development, even when the bank has reached its hard limit.
Why Banks Have Limits
Banks have limits for numerous reasons. Small and local banks typically have limits on the amount of money they can lend to businesses without compromising their own capital reserves. For national bank chains, the amount of capital available is usually not the problem, so much as it is the requirements. Traditional lending institutions have a very thorough screening process, which can seem prohibitive to businesses. High minimums for credit ratings and established financial histories are standard requirements when seeking bank loans. The reasons make sense, from the bank’s perspective. Finance strategies are based on risk and reward. Small and growing businesses present risks to banks, hence the high requirements, the need for collateral, and the limits on the amount of financing available.
Thinking Outside The Box
The other major limitation with traditional lending channels is finding finance strategies that fit the needs of your business. Most financial institutions offer loans, and not much else. Unsecured lines of credit for new businesses, equipment financing, leveraging receivables and other assets for working capital, and more are not in a bank’s repertoire. By partnering with the right commercial finance company, businesses can access a wide range of affordable and flexible solutions to meet their needs and achieve their goals, often without the need to assume debt. What’s more, commercial finance strategies can be arranged quickly and efficiently, so entrepreneurs can sidestep the red tape of traditional lending channels.
Finance Strategies Tailored To Your Business
BG Capital Funding Group works directly with business owners to understand their current needs, and where they would like to be down the road. We offer comprehensive programs for everything from working capital and equipment, to commercial real estate financing and business growth strategies. Our depth of knowledge in both finance and the private sector allows us to create solutions tailored to your unique needs. Contact BG Capital Funding Group today to get started.