Shannon Shular 2014

As we close out the last quarter of 2014, many of you may be requesting line increases from a bank to support current business operations or taking on new challenges in 2015 that require capital.

Either way, I thought the two articles from Forbes and Entrepreneur were relevant topics to share.

Why small business lending has not recovered

Transaction costs to process a $100,000 loan are comparable to a $1 million loan, but with less profit. As a result, banks are less likely to engage in lending at the smallest dollar level. Some banks, particularly larger banks, have significantly reduced or eliminated loans below a certain threshold, typically $100,000 or $250,000, or simply will not lend to small businesses with revenue of less than $2 million, as a way to limit time-consuming applications from small businesses.

Complete Article

Let me assist you with an alternative to BANK FINANCING!

Asset based lending and factoring services create borrowing based financing solutions incorporating Accounts receivable, Inventory, & Equipment.

  • Month to month contracts- No PG’s
  • 90% loan to value against accounts receivable & contracts
  • Over advances and P.O. financing options
  • Letters of credit to suppliers


4 Mistakes to avoid when applying for a bank loan

  • Mistake #1: Underestimating the value of personal credit: Bankers look at your personal credit history to get a sense of your track record with financial responsibilities.
  • Mistake #2: Applying for the wrong type of loan: Business owners using credit intended for a short period of time for a long-term purchase.
  • Mistake #3: Expecting a loan without collateral or historical cash flow to pay it back: Be sure to detail the revenue to repay the loan & collateral to back it up.
  • Mistake #4: Waiting too long to approach a banker: Small business banking is about relationships. Not only will you develop that face-to-face relationship, but you will also have the opportunity go get your business financials organized and in shape with a banker’s eye in mind.

Complete Article

Email me for a short list of local bankers interested in your type of credit request:


Shannon Shular