Did the bank decline your business loan?

One of the more common problems heard from business owners today is that their application for financing has been denied, and their open credit lines have been reduced or even eliminated.  Business loans under $1 million fell 13 percent between June 2007 and June 2011.  Many business loans that would have been approved prior to the financial crises are no longer meeting the requirements of the banks.  Since banks are in the business of lending money, why are so many loans being turned down?   There has remained a climate of restrictive lending practices over the past few years, most of which stems from issues with the mortgage crises of 2008 and the risky loans that were being made at the time.  With banks tightening their requirements for approvals as a reaction to this, and many business owners experiencing decreased revenues, it’s led to difficulty accessing capital that companies need to operate.  That is where lenders like Harbour Capital have been able to step in and help.  Unaffected by the mortgage problems because we only lend to businesses for equipment and working capital, we’ve been able to provide approvals where local banks have fallen short.  Additionally, our approvals generally require only a review of the basic company & ownership credit information for amounts up to $150,000 – in comparison, most banks will generally need a detailed financial package dating back several years in order to do a more thorough and time- consuming analysis of cash flows. If they are willing to approve the loan after this lengthy review, they will also typically require additional business or personal assets for added security, whereas Harbour Capital will only collateralize the equipment, thus reducing your risk as the borrower.  One of the most guiding principles of any business is its ability to leverage its operational & credit history to obtain capital needed to function and expand.  So why not leverage that ability to get the loan your company needs to get ahead – regardless of what your bank may say.