I see a lot of comments on this forum about people seeking out business financing. There are comments about the huge fees and interest that banks and some lenders charge.
However, I think there are some misconceptions regarding these programs. Most new businesses or growing businesses do not qualify for traditional bank loans - that is just the way it is. Thus, they have to get creative. This may mean taking a higher interest rate loan or paying the fees just to get started. But, keep in mind that these programs or loans do not have to be permanent. Once your business uses those funds to grow or take advantage of the opportunities in front of you - and your business becomes more stable in the eyes of traditional lenders, you can always either re-finance on better terms or find a better, cheaper lender to advance funds to pay off your existing creditor. Thus, you get the funds you need to start or grow and then work to make those funds better for your company.
Additionally, being creative may mean using more than one lender or seeking more than one type of loan. If you need working capital, seek a working capital loan; if you need equipment, seek and equipment loan; if you need commercial property, seek a commercial property loan. But, if you are seeking funding for several purposes - seek loans for each one of those purposes - e.g. if you need $100K - part of which will be used for equipment and part for working capital - instead of trying to get the whole $100K in unsecured funds - trying seeking a loan just for the equipment and then another for the working capital. This could even save you money in the loan run as you would require less unsecured funding (which usually has higher rates and fees) - plus get better rates from the secured loans.
These times require creative thinking - think creatively about financing until your business takes off or the market turns around.
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