Don’t Take The Main Road With Your Finances

Don’t take the main road in finance: try these tips

Don't take the main road with your financesBy Paul Watson

There you are, your business plan in hand and the bank manager’s office before you. You can feel the sweat dripping from your forehead as that suited, booted, Gordon Gecko-esque manager opens his door and says, “Come in, then. Let’s hear why I should give you a loan”.

You sit opposite his plush glass desk, distracted by the clang of the Newton’s cradle atop it, as you recite you’re your wildest business dreams to him. The bank manager stares at his watch for a bit, yawns, looks dreamily out the window and toys with his Newton’s cradle. Once you’ve finished, he simply says no, and pushes you out the door with all the dismissiveness of an irritable geography teacher.

Trudging through the rain to your struggling business, you can’t help but wonder, Why me?

Yours is a story that thousands of business owners suffer every year. Indeed, national newspaper The Daily Mail claims that more than 43 per cent of small businesses are rejected for loans.

But there are alternatives. Here are just a few.

Find the niche lenders

Lenders that specialize in your field are usually your best bet, understanding your niche market more fully than the big banks.

Let’s use construction finance as a prime example.

With such a risky loan – the man hours involved in the construction of a building alone can cost an arm and a leg – the major banks will shoot your application down faster than a Mo Farah lap time. But with a lender specializing in construction finance, you’ll find it much easier.

The same theory applies across the board, so find the niche lender that suits you.

Get paid-up from a partner

Much like Mel Gibson and Danny Glover in Lethal Weapon, partnering up can have its teething troubles. But if your business is in dire need of finance, you might just want to consider finding a buddy who can forward you cash and help out with the company.

Not looking for anyone else’s input? Then find a silent partner who’ll front you the money but keep mum about your operation.

Gain a grand from the government

Getting into bed with the government might seem like a lot of pressure, but they also provide regular business grants to companies that can give the economy a boost.

To gain one of these grants, you’ll have to prove that you can fill the economic niche the government are searching for. However, if you’re willing to jump through these hoops, you’ll find yourself with stacks of cash and a business in the pink.

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