Working Capital Financing
It is not an exaggeration to say that obtaining working capital loans has routinely become a tug-of-war process for most small businesses. Working capital financing is simply not available from many banks.
In a promising development, the dysfunctional banks are being rapidly replaced by more effective commercial lenders. We are seeing new and practical small business finance options emerge to fill the void left by banks which have abandoned commercial lending (especially working capital financing). Many small businesses are qualifying for these new working capital management programs because inappropriate bank underwriting criteria have been replaced by a more relevant business cash flow analysis. There is usually a short turnaround time for obtaining working capital if a business qualifies for this straightforward and practical small business financing program.
The primary challenge for many small business owners will be to quickly conclude that their prior banking relationship is no longer what it was just a few months ago. By moving forward promptly and choosing new commercial lending sources that are capable of operating in this new small business finance environment, business owners will find the new working capital loan options to be a substantial improvement over previous bank financing in a surprising number of cases (this is the silver lining in the working capital financing cloud hanging over most commercial borrowers).
Stephen Bush