Most banks have a separate department dedicated to small businesses. Basic borrowing needs are often met with business credit cards or overdraft facilities / lines of credit. The upper limit for small business borrowing is different for every bank and ranges from $250,000 up to $750,000 for simple situations. Personal credit strength of the company’s owner(s) is often a major factor in small business lending. A big advantage is that costs and reporting requirements are low. Because this is such a volume driven business, relationship with the lender and correct presentation of the deal often makes the difference between an approved loan and a sad rejection.
Platinum Consulting can help.
When you buy a business, the seller usually wants more money than the buyer has. While we are experienced in Mergers & Acquisitions advisory services to large companies, we now focus on assisting such buyers in finding the required financing to complete the purchase. Banks have more stringent requirements for such loans because of the additional risks involved and there is a strong emphasis on cash flow. Our previous experience as a banker helps tremendously in answering all your lender's tough questions even before they come up, thereby getting you the loan you need to complete your purchase. Use our knowledge and experience to your advantage.
Managing working capital is a daily struggle for most businesses. Doing so efficiently can be a tremendous boost to the business and make the difference between delivering on the next big order or missing out. Having access to a line of credit is critical to the success and growth of most businesses, even when you think you don’t need it. Structuring the correct line for your company is an art and a science that requires a patient understanding of the business’ needs. We devote the time that your banker won’t so that you get the best Line of Credit for your company.
* We also assist companies get Receivables Factoring where applicable. Our extensive list of private lenders ensures that you get the right solution.
Equipment financing is one area that banks and specialty lenders often compete in. An established bank relationship will allow a company to avail the best interest rates to buy new equipment. Often the equipment vendor will also lend money against it either as a loan or a lease (very common for vehicles) or have relations with some equipment lenders for the same. There are other specialty asset based lenders as well that will finance used equipment on a standalone basis. This is often done based on liquidation value and is meant to be a short-term cash injection at higher interest rates. Ask us about your options for your equipment financing.