#TheMoneyFactor – Episode 004 – No Track Record? Worried About Your Financing Options?
I’m Ian Varley and this is #TheMoneyFactor. No track record? Worried about financing options for your business? That’s what we’re going to be talking about today on #TheMoneyFactor Hi, I’m Ian Varley CEO of Eagle Business Credit welcome to episode 4 of #TheMoneyFactor. Where we take your everyday questions about business finance and common problems that you run into as a small business owner. Today we’ve got a lot of questions coming in about how to find finance for your company. You can find us on social media #TheMoneyFactor. If you’ve got any questions you want to ask please feel free, send them in. I’ve started a business why wont my bank give me a line of credit? Hey great question, you know it’s really hard as a startup company to get finance from a bank. They typically will want to see two or three years maybe four years worth of history and some track record. You know it’s hard for a bank to take that initial risk when you’re a startup. They don’t know how it’s going to pan out. So unless you’re a high net worth individual, you have some tangible collateral like real estate. That’s what the bank will want to be able to give you money. Kind of feels weird that you have to give them something in order to get money. You’d rather you get some kind of unsecured loan from a bank but it’s probably not going to happen unless you this is your third or fourth go-around and the banks very comfortable with you. May not be the best place to go to start your finance journey. There are lots of different options out there. Some banks are more flexible than others and often it depends on how much you’re actually looking for of course. But you know, worth a try. We can talk about some banks that we know will do small business lending. If you’re an established company and you’re going for that big line of credit and you’re graduating into a facility from something else. Maybe you’ve got member loans or investor money.