Ty Kiisel - Getting a Business Loan: Financing Your Main Street Business

GETTING A BUSINESS LOAN

FINANCING YOUR MAIN STREET BUSINESS

_____________

Ty Kiisel

Getting a Business Loan: Financing Your Main Street Business

Copyright 2013 by Ty Kiisel

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publishers location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law.

ISBN-13 (pbk): 978-1-4302-4998-6

ISBN-13 (electronic): 978-1-4302-4999-3

Trademarked names, logos, and images may appear in this book. Rather than use a trademark symbol with every occurrence of a trademarked name, logo, or image we use the names, logos, and images only in an editorial fashion and to the benefit of the trademark owner, with no intention of infringement of the trademark.

The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights.

While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein.

President and Publisher: Paul Manning

Acquisitions Editor: Jeff Olson

Editorial Board: Steve Anglin, Mark Beckner, Ewan Buckingham, Gary Cornell, Louise Corrigan, James DeWolf, Jonathan Gennick, Jonathan Hassell, Robert Hutchinson, Michelle Lowman, James Markham, Matthew Moodie, Jeff Olson, Jeffrey Pepper, Douglas Pundick, Ben Renow-Clarke, Dominic Shakeshaft, Gwenan Spearing, Matt Wade, Steve Weiss, Tom Welsh

Coordinating Editor: Rita Fernando

Copy Editor: Kezia Endsley

Compositor: SPi Global

Indexer: SPi Global

Cover Designer: Anna Ishchenko

Distributed to the book trade worldwide by Springer Science+Business Media New York, 233 Spring Street, 6th Floor, New York, NY 10013. Phone 1-800-SPRINGER, fax (201) 348-4505, e-mail . Apress Media, LLC is a California LLC and the sole member (owner) is Springer Science + Business Media Finance Inc (SSBM Finance Inc). SSBM Finance Inc is a Delaware corporation.

For information on translations, please e-mail .

Apress and friends of ED books may be purchased in bulk for academic, corporate, or promotional use. eBook versions and licenses are also available for most titles. For more information, reference our Special Bulk SaleseBook Licensing web page at www.apress.com/bulk-sales .

Any source code or other supplementary materials referenced by the author in this text is available to readers at www.apress.com . For detailed information about how to locate your books source code, go to www.apress.com/source-code/ .

Apress Business: The Unbiased Source of Business Information

Apress business books provide essential information and practical advice, each written for practitioners by recognized experts. Busy managers and professionals in all areas of the business worldand at all levels of technical sophisticationlook to our books for the actionable ideas and tools they need to solve problems, update and enhance their professional skills, make their work lives easier, and capitalize on opportunity.

Whatever the topic on the business spectrumentrepreneurship, finance, sales, marketing, management, regulation, information technology, among othersApress has been praised for providing the objective information and unbiased advice you need to excel in your daily work life. Our authors have no axes to grind; they understand they have one job onlyto deliver up-to-date, accurate information simply, concisely, and with deep insight that addresses the real needs of our readers.

It is increasingly hard to find informationwhether in the news media, on the Internet, and now all too often in booksthat is even-handed and has your best interests at heart. We therefore hope that you enjoy this book, which has been carefully crafted to meet our standards of quality and unbiased coverage.

We are always interested in your feedback or ideas for new titles. Perhaps youd even like to write a book yourself. Whatever the case, reach out to us at to sign up for newsletters and discounts on future purchases.

The Apress Business Team

To the Main Street business owners who create the jobs and keep our local communities alive

Contents

Preface

Ive spent the 30 or so years of my career in small business. Most of that time has been spent working with the Main Streettype businesses that feed us, do our dry cleaning, service our automobiles, and perform dozens of other services. Largely underappreciated, these Main Street businesses create the lions share of new jobs and employ about half of the workforce in the United States.

Although politicians and community leaders like to laud the achievements of the successful business leaders within their communities, it sometimes feels like the deck is stacked against them. Ask any small business owner, and he or she will likely acknowledge that access to capital is one of the biggest challenges they face every day.

Recent years have been tough for everyone. Since the financial meltdown, subsequent recession, and the plodding recovery, our friends on Main Street have taken a beating. Regulators, along with an overall tightening of credit, have made it difficult for business people to find the capital they need to grow, hire employees, and strengthen local communities. Whats more, many risk-averse bankers have even moved upstream to what they claim are more profitable customers, leaving the businesses that have traditionally relied on them as a vital part of the Main Street business community out in the cold.

It hasnt been that long ago that a small business owner could walk into the bank with an opportunity and walk out with the financing to make it a realitythose days are gone. Credit score, time in business, annual revenues, and collateral rule the day. Bankers want perfect borrowers. Unfortunately, most of us arent perfect.

Fortunately for small business owners, there are still community banks and other non-bank lenders still interested in helping Main Street thrive and grow. You simply need to know where to look. This book should help.

About the Author