The Six Rules of Business Borrowing Inverness FL
Crystal River, FL
Michael L. Gudis
Education: BA MBA
Years of Experience: 43
IARFC, FPA, NAIFA, NICEP
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Charitable Planning, Healthcare Accounts
Executive, Business, Career
Certified Coach from an ACSTH Coaching Institute
Business, Entrepreneurship, Leadership
Executive, Business, Career
Palm Beach Gardens, FL
Money Concepts International, Inc.
Education: BS - Financial & Estate Planning - Brigham Young University - 1980
Years of Experience: 29
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Seminars Work, Stocks and Bonds, Mutual Funds, Collectable Coins , Precious Metals, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans
Ft. Lauderdale, FL
Interactive Financial Network, Inc.
Years of Experience: 15
Invoice, Estate Planning, Business Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Family Offices, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Business Coach, Charitable Planning, Healthcare Accounts, BuySell, Compensation Plans
Safe Capital Group, Inc. / Wealth Trust Services, Inc.
Years of Experience: 29
IARFC, FPA, NICEP
Invoice, Business Planning, Retirement Planning, Tax Planning, Seminars Work, Annuities, Life Insurance, Medical Insurance, Group Insurance, Charitable Planning, Charitable Foundations, BuySell, LiabCover
Relationship, Business, Life
Sherif Financial Group, LLC
Education: MBA, BA
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Charitable Planning, BuySell, Compensation Plans
The Six Rules of Business Borrowing
Business Borrowers Should Consider BOTH Traditional and Alternative Lenders
By Kenneth P. Easton, Jr.
“Rules” to business borrowing! An interesting concept. True — the “rules” presented below may be considered as act-on “options”. But the consequences of not being aware of these options, achieving a successful business loan program, can be costly to your business, your fortune and your peace of mind.
“Rules” are actions businesses should adopt ensuring they obtain the best arrangements with their current lender; in good times or in worst case scenarios. These rules also apply to a new or replacement lender (whether the move is voluntary or forced by circumstances).
Observation: There is a great diversity of lenders out there — which one (or two) will be best for you? Only a few can address your specific needs or situation. However, your search process may well determine not only the success and costs of your quest, but the duration —from 30 days to possibly a year or more. No one needs that kind of a hold up.
Know Your Money Sources
The “Traditional Lenders” are commercial banks and thrift institutions (savings banks) that continue to be the most utilized sources. Many stop there simply hopeful for the best deal — unaware of the many, and probably more appropriate, alternatives. Frequently, physical convenience dictates choice — not relevant in this “connected” age. You want the best deal, not the shortest walk. These “mainstream” or “prime” lenders offer: standard loan products; rather inflexible loan structures; unattractive pricing options; and “boilerplate” loan covenants. Neither too receptive nor creative. There are, of course, unique exceptions; especially within “community banks”. Tough credit situations or specialized loan needs are best left to alternative lenders.
“Alternative Lenders” offer wide spectrums of business loans; meeting unique needs and quick turnaround requirements. Many larger credit unions offer business loans. Business membership (a requirement) usually happens at the loan closing. As with most alternative lenders, they are staffed with seasoned business lenders from banks and other alternative lenders. Most offer quick turnaround, access to decision makers with many dedicated to assisting the more difficult credit requirements. Other “Alternatives” include independent and specialized finance companies, divisions or captives of industrial or insurance companies, or even subsidiaries of some banks. Do not forget state and municipal loan programs.
Alternative loan sources may offer a variety of specialization, to include traditional loan programs:
• receivable and inventory financing
• equipment loans and leasing programs
• seasonal inventory loan advances
• purchase order financing (including government contracts)
• invoice financing (factoring)
• letters of credit
• loans to hospitality / health care businesses
• real estate / investment property mortgages
• mezzanine (quasi-c...