In an era of continuous economic volatility, business news can be a powerful barometer of market performance. In the past, business news has consistently supported the view that business investment is a sound financial decision. However, in light of recent negative economic indicators, business news may be weaker than expected. Business cycles have historically been stronger than today’s weak economic outlook, but caution is now required when making business decisions.
Small business news is dominated by two themes: management news and market/share news. Interestingly, despite the current economic environment, business investment is still strong. The number of active small business owners in America declined by 3.3 thousand or 18 percent during the three-month period ending in April. The decline in small business owners was the highest on record, and declines were felt across virtually all sectors. The average dollar sales of large and small businesses are now showing signs of improvement, with companies in the S & P 500 posting record increases.
One area where small business owners can benefit is with commercial real estate loans and commercial mortgage loans. Mortgage lenders appear to have become more patient in giving mortgages to businesses facing tough credit situations. During the past two years, the number of applications for commercial real estate loans has risen by twenty-nine percent. An increase in both applications and financing seems to be the result of the uncertain economic future – borrowers are eager to secure long-term commitments and are willing to accept higher interest rates.
As the economy improves, the number of business loan applicants will likely increase as well. Many current business loan borrowers with poor financial histories will not experience the same financial benefits as those with better credit scores. Those with better credit are seen as less risky borrowers, so lenders are more willing to approve their applications.
When applying for a small business loan, business owners should make every effort to have a well-written business plan. This includes a detailed description of the products or services that the company offers, financial projections, management information, a balance sheet, marketing strategies, goals and objectives, and a business plan review. Each section of the plan should be presented in detail. Having a well-written business plan will help convince potential lenders that the business has sound business planning principles. It will also likely increase the chances that the business can receive financing.
Small business financing does not come easily. Lenders are experiencing significant financial difficulties due to a poor economy, high unemployment, and rising costs. Because of these factors, most lending institutions have tightened their lending policies, increasing the applicant’s chances of rejection when applying for a business loan.
To increase your chances of success with business loans, business owners should consider working with experienced entrepreneurs who have obtained successful business loans. In particular, you should choose lenders that specialize in working with small businesses. Some of these entrepreneurs were able to obtain business loans despite having poor credit ratings or other lending obstacles. These lending professionals will know exactly how to present their business plan to potential lenders.
There are many professional business finance companies that can provide small business owners with the funding they need. Working with a seasoned finance consultant who has experience working with business borrowers will be beneficial because he/she will be able to provide you with personalized business finance options. To find reputable alternative lenders, you should visit online business finance resources such as Small Business Administration loans and SBA loans forums. In most cases, there are other small business owners, as well as expert finance professionals, who can provide you with valuable information regarding SBA loans. Alternatives to traditional financing are available to small business owners.