You’ve gotten a certified appraisal and know exactly how much your equipment is worth, as well as your property and business as a whole. Your credit is decent, you own a building for collateral, and you still can’t get a loan for your small business. What gives? This week, in The New York Times’ “You’re the Boss” blog, two experts explain why.
Small businesses aren’t requesting as many loans as they have in the past, which has, in part, reduced bankers’ interest in focusing on the small business sector. Lenders also are realizing that small business lending isn’t as profitable for them as other types of lending because small businesses can’t borrow as much as larger businesses for many reasons – they may have weak financials, the building they put up for collateral may be worth less than it was in the past because of decreased real estate prices, and they may no longer be deemed credit-worthy as lenders have tightened their rules for creditworthiness.
It’s kind of a never-ending cycle – small businesses borrow less so banks become less interested in focusing on them, so businesses are able to borrow less, further reducing lenders’ interest.
If you’re a small business owner in this situation, the good news is that you’re not along. As more small businesses have difficulty securing loans, they have to turn to non-traditional methods of obtaining cash, which makes these non-traditional methods more mainstream. But no matter how you secure funding for your business, the first step always is knowing what your business is worth. Contact the NEBB Institute today to obtain a certified appraisal of your machinery and equipment.
The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.
By: NEBB Institute
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