Publishing Note: We’re pleased to introduce an 8-part small business financing blog series in partnership with The Business Backer. This blog series will clear the financial fog, providing you with the tools necessary to make the best financing decision for your diverse or woman-owned small business.
Each blog will address a key question you should ask potential funders before accepting a deal. Making an informed financing decision can help you avoid the traps and find the right partner for your business.
Since 2007, The Business Backer, a Greater Cincinnati-based company, has helped thousands of small businesses across the country secure the financing they need to thrive. Their area of expertise includes factoring B2B invoices into cash, purchase and specialty financing, equipment leasing and help accessing traditional loans and lines of credit.
The 8 Questions Small Business Owners Should Ask When Seeking Capital
Just like we need water, oxygen, Netflix, and other basic human necessities to survive and thrive, you need capital for your business. From covering payroll during a lull in business to capitalizing on an opportunity to expand, working capital is essential to your livelihood. While the importance of working capital has remained the same for decades, accessing it through traditional means has changed dramatically.
It wasn’t more than ten years ago that you could pop in to your local bank, talk to your banker and access the capital you needed in a few weeks. Unfortunately, times have changed. The economic collapse of 2008 resulted in a regulatory environment with an even more conservative approach to commercial lending, and the sector that has taken the brunt of this conservatism is small business. While market conditions are slowly improving for small business, it is still an uphill battle.
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