If you have a business line of credit or will seek financing in the next 24 months, listen up.
Criteria for business lending has tightened significantly, so this year's loan renewals – many of which fall between now and August – might bring some unhappy news, especially to those who have suffered in this recession.
Non-bank finance companies can use collateral to secure a loan or line of credit. Depending on how long a business has operated and its financial condition, there are different products available, including asset-based financing, factoring, SBA-guaranteed loan products, private equity and bridge financing.
Non-bank lenders have more lending flexibility than banks – they can work with startups, recent loan losses and tax liens, and can be a part of debt restructuring. That means they can work with a company that owes more in accounts payable than it has in accounts receivable, work through tax delinquency issues and help businesses that don't have two year's of operating history.
Don't be uninformed and underprepared when a bank can't renew or accommodate a line of credit or business loan request. The trials and tribulations of what's to come have only just started.
Suzy Oubre is a principle of Vancouver-based Alliance Commercial Credit Group.
