| OK. So you own a restaurant or retail business and | | | | an increase over last year? Two years ago you could |
| you need funding. You walk into the bank and tell the | | | | get a loan with stated income which means you |
| banker your story. You tell him your credit has | | | | didn’t have to prove it and no tax returns. Wow, |
| suffered a bit recently and your sales have declined a | | | | have things changed. If you are going to try the bank |
| bit from last year but you need money. At this point | | | | loan route, be prepared to bring your tax returns, |
| the banker breaks out into laughter like he just heard | | | | personal financial statements, great credit, your first |
| Robin Williams doing his monologue at the Oscars. | | | | and second child, and a lot of begging. And after giving |
| Maybe this is exaggeration and certainly not funny | | | | it your best shot, you too may very likely go to the |
| especially since the life of your business could be | | | | mailbox in three weeks and open the dreaded letter |
| hinging on whether or not you get this funding. What is | | | | with the word Declined stamped on it. |
| laughable is that banks keep saying they are lending | | | | So what do you do if you own a business, your name |
| money and business owners keep saying otherwise. | | | | is not Gates, and you need to fund expansion, buy |
| Restaurant funding is getting increasingly more difficult | | | | inventory, or whatever else you do in the normal |
| to obtain especially if you approach a typical bank. | | | | course of running a business? |
| We have all heard in the news that banks have been | | | | There is another option. It is called a merchant cash |
| given billions in bailout funds to secure and stabilize the | | | | advance or business cash advance and is becoming |
| banking system which in turn should encourage banks | | | | an extremely popular option largely due to the fact |
| to lend again which would stimulate the economy. That | | | | that banks are just unwilling to lend money. Not to |
| is great in theory but the reality is that small business | | | | mention the fact that it is also a much easier |
| owners and especially restaurants can’t get | | | | process. There is very little paperwork and the |
| financing from a bank. Recently I was told by a bank | | | | benefits are many. There is no personal guarantee |
| representative of a very large National bank located in | | | | required, no collateral, and poor credit above 520 is |
| N. Carolina that starts with a W, that in order to get a | | | | typically ok. Oh, and you can get the funds typically |
| loan you needed a 740 credit score or higher. | | | | within 7 days. There are lots of differences between |
| Compare that to two years ago when 640 was | | | | companies so make sure you choose wisely and |
| acceptable. He also told me that they would have to | | | | don’t put your dreams on hold. |
| provide two years of tax returns and needed to show | | | | If you need retail or restaurant funding, do what many |
| increasing sales year over year. That alone alienates | | | | already have, consider a merchant cash advance. |
| about 90% of all businesses in the US. How many had | | | | |