When Banks Won’t Lend to Banks, Who Will Lend to Small Business?

How Small Business Owners Can Protect Themselves

Small business owners know that business loans are hard to get these days. You are not alone. Now comes news that banks won’t lend to each other (Lending Between Banks Seizes Up, Wall Street Journal, Sept 17, 2008). Certainly, when behemoths such as Lehmann Brothers can’t get loans, and the government has to step in to loan money to AIG, credit is tight. But when a bank won’t make a loan to another bank, who is going to make business loans to small business?

A bank? They are not even loaning money to each other. The Government? Well, you’re not AIG, so I’m not sure you can count on government small business loans. How do small business owners protect themselves during these uncertain economic times? You most likely have taken some positive steps, such as cutting expenses and protecting your core business, but what about money?

Maybe you don’t need money today, but even the best run businesses can face unexpected disruptions or unforeseen difficulties. Even if you don’t need a business loan right now, wouldn’t it be smart to make sure you had money available if you did need it. You may want to consider a Line of Credit.

A good Line of Credit has many attributes, including:

• Quick Access to Funds
• Easy Application Process
• No Access Fees
• No Maintenance Fees, and
• No Application Fees

If you can find a lender to extend a Line of Credit to you, it can be better than a business loan. With business loans you begin paying interest immediately on the entire amount. With a Line of Credit, you only pay interest on the money you use, and then only if you draw on the line. Once you have a Line of Credit in place, it’s one less thing on your mind. Now you can handle business contingencies without concerning yourself if your local bank is going to give you a business loan quickly when you need it.

With banks hesitant to loan to other banks, you may want to research alternative lending institutions, such as Advance Restaurant Finance, LLC (ARF). ARF has been loaning money to restaurants and other small businesses for almost a decade. In addition to mezzanine business loans, ARF provides other innovative financing solutions, such as Lines of Credit and Interest Only Business Loans. Best of all, 95% of ARF’s loans are unsecured small business loans.

ARF has a simple application process, requires very little documentation, provides answers within a few business days, and can fund within 5-7 business days. ARF also loans up to $1,000,000 and in some instances, more. Don’t gamble with your business and don’t gamble on what a bank may do, call ARF and put a Line of Credit in place today.

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