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4 Replies Last post: Mar 5, 2009 6:54 AM by bmt2008

Can a growing profitable biz get a bank loan right now?

Mar 3, 2009 10:07 PM

fashionman 1 posts since
Mar 3, 2009

I have a hugely successful chain of retail stores in California. Our numbers are profitable and growing every year since we started. Even in this awful retail environment, we are growing over last year. We are trying to expand to take advantages of great spaces available for lease. We need capital to build out the store. We are wondering if we should wait until this bank mess gets better. It looks like the banks need money more than I do. Or are they kind of forced to lend to a good performaing companies? Should I go to the bank now or later?

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token88 38 posts since
Oct 13, 2008

1. Re: Can a growing profitable biz get a bank loan right now? Mar 4, 2009 12:40 PM

How much are you looking for?

alexmartinez.1@hotmail.com

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mlebovits 42 posts since
Oct 10, 2007

2. Re: Can a growing profitable biz get a bank loan right now? Mar 4, 2009 3:44 PM

Yes, they can if the borrower approaches the right bank with a story which demonstrates their ability to service the debt. Both the borrower's historical track record of generating cash flow and projections will be critical.

I spoke with one Los Angeles bank today that is looking to make loans up to $2.5 million to creditworthy businesses. It's a relatively new bank that has lots of deposits it needs to put to work.

Marshall Lebovits

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NoBullFunding 278 posts since
Oct 6, 2008

3. Re: Can a growing profitable biz get a bank loan right now? Mar 4, 2009 10:09 PM

If your business is strong, someone will lend to you, especially having an established record of growth and strong cash flow.

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bmt2008 305 posts since
Jul 30, 2008

4. Re: Can a growing profitable biz get a bank loan right now? Mar 5, 2009 8:22 AM

What is your current lending/bank telling you? They should be willing to help you expand. Have you tried non-traditional options like Business Cash Advances? Or, given the environment, have you tried leasing these spaces for a percentage of your profits? Never know what a leasor will take if their property has been sitting for a long time.

Just soem thoughts

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ForumsFinancing Tips

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Can a growing profitable biz get a bank loan right now?

Mar 3, 2009 10:07 PM

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