The Entrepreneur's Source: Securing a Business Loan Using Multiple Borrowing Options
SOUTHBURY, CT--(Marketwire - Jul 28, 2011) - Economic indicators of late are showing that small business lending is on the rise. That's good news! However, to secure the money needed to get their business off the ground, there is more that prospective franchisees or business owners can do to help ensure a loan approval, according to The Entrepreneur's Source (TES).
"People can be intimidated by the process of applying for a loan to open a new business," says COO and President of TES, Brian Miller. "Even in a tough economy, TES can help people understand the different approaches available to aspiring business owners to make it easier to get approval for the investment capital needed."
The business coaches with The Entrepreneur's Source work directly with a strategic financial partner, Guidant Financial. Both TES and Guidant share a common vision of how to help new and passionate business owners get the financing they need. "Prospective entrepreneurs need to seek out financing early in the process of opening a new business to get a perspective of what is available and what they can afford," Miller added.
"People can qualify for more capital dollars when they take a layered approach to financing a business," says Jeremy Ames, CEO and founder of Guidant Financial. "By instituting multiple borrowing options at lower amounts, aspiring business owners will find it easier to get approved for a greater total amount of financing," Ames added.
TES says that taking a layered approach to acquiring capital involves combining several sources. For example, an entrepreneur might combine a Small Business Association (SBA) Loan with unsecured loans, direct bank financing and equipment leases and even consider creative ways to leverage existing assets.
"Lending institutions are more open to offering a loan when they see more cash on the table from other sources like retirement funds, home equity loans and access to other assets of the borrower," said Ames. "Today, 70 percent of our clients use multiple forms of financing."
"When aspiring business owners, including the many professionals who are in career transition, understand the financing options available to them, business ownership becomes a more viable option," said Miller. "When the business in question is a franchise, our experience indicates that lending institutions can be even more open to provide funding."
Miller explains that when banks and other lending institutions can consider both the applicant's credit history and the track record for success of the franchise, they have a better foundation to establish an expectation for loan repayment.
"Our ability to maximize a client's capitalization simply comes through the education we provide," Miller explains. "Many clients have the ability to capitalize their businesses, they simply need to understand what their options are, and explore the creative ways their funds can be obtained."
For more information on financing a new business, franchise opportunities and business coaching support, please visit http://www.entrepreneurssource.com/.
About The Entrepreneur's Source (E-Source)
The Entrepreneur's Source is North America's leading career and Business Coaching Company dedicated to the entrepreneur with more than 230 offices in the United States and Canada. With its unique E-Source Coach Advantage, E-Source offers a full range of services to individuals seeking alternate career options and to franchise businesses looking to increase performance. Today, E-Source dominates the $1.5 billion dollar Business Coaching/Consulting franchise market in North America. Additional news about E-Source, and other FSBI international brands, can be found on http://www.FranchiseNewsRoom.com.