crain's new york business.com
By: Elaine Pofeldt
October 18, 2011
BoeFly aims to aid businesses disappointed by their banks, but there's new competition in this financial services niche.
The Company: BoeFly
What it Does: It's an online marketplace matching small business borrowers with lenders around the country.
How's It Doing: Founded in 2010 by two finance industry veterans, the Manhattan-based site is generating nearly $150,000 in revenue a month. It has raised $4 million from private investors. The founders expect it to become profitable in 2012.
To learn more about BoeFly... read the full article... click here.
Showing posts with label bankers. small business financing. Show all posts
Showing posts with label bankers. small business financing. Show all posts
Tuesday, November 15, 2011
Friday, January 21, 2011
How to Finance an Acquisition
The credit crunch has led to an increase in seller financing, asset-based lending and alternative sources of capital for buyers.
By Carolyn Brown
Inc.com, Jan 2011
In pursuing an acquisition there are always key items to consider such as the continued growth opportunity provided by the target company, purchase price, and financing terms. Many acquisitions fail due to these priorities not being in line, say M&A experts. For instance, a common mistake buyers make is to focus on an attractive purchase price, rather than the strategic importance of the company's present and future growth plans.
Securing capital and the best financing terms for an acquisition can be daunting and challenging. The sub-prime lending crisis and sluggish economy over the past 24 months has created huge changes in our financial system.
to read the full article... click here.
By Carolyn Brown
Inc.com, Jan 2011
In pursuing an acquisition there are always key items to consider such as the continued growth opportunity provided by the target company, purchase price, and financing terms. Many acquisitions fail due to these priorities not being in line, say M&A experts. For instance, a common mistake buyers make is to focus on an attractive purchase price, rather than the strategic importance of the company's present and future growth plans.
Securing capital and the best financing terms for an acquisition can be daunting and challenging. The sub-prime lending crisis and sluggish economy over the past 24 months has created huge changes in our financial system.
to read the full article... click here.
Monday, January 3, 2011
Check Out: New small business loans approved in 'minutes'
CNNMoney.com
By Catherine Clifford, staff reporter
December 15, 2010
New York (CNNMoney.com) -- The Small Business Administration announced two new lending initiatives on Wednesday aimed at getting relatively modest loans to small businesses quickly.
The idea is to get loans under $250,000 into the hands of small businesses efficiently: Applications are only 2 pages long and can be approved anywhere from "minutes" to 10 days, according to the SBA. Greater access to credit should help spur firms to grow and hire, giving the economy a boost.
To read more.. click here.
By Catherine Clifford, staff reporter
December 15, 2010
New York (CNNMoney.com) -- The Small Business Administration announced two new lending initiatives on Wednesday aimed at getting relatively modest loans to small businesses quickly.
The idea is to get loans under $250,000 into the hands of small businesses efficiently: Applications are only 2 pages long and can be approved anywhere from "minutes" to 10 days, according to the SBA. Greater access to credit should help spur firms to grow and hire, giving the economy a boost.
To read more.. click here.
Friday, December 31, 2010
Check Out: An Alternative Financing Option for Start-ups
The Wall Street Journal, Small Business
WSJ.com, December 2, 2010
Entrepreneurs Going the Royalty Route Use a Share of Revenue to Pay Back Loans
By: Scott Austin
When first-time entrepreneur Philip Vaugn recently began searching for start-up capital, he traveled down two conventional paths.
Mr. Vaugn, co-founder of travel-review aggregator Raveable.com in Kirkland, Wash., says he wasn't interested in forking over a large chunk of equity to venture capitalists or committing to ambitious investment-return expectations. He also considered a loan, but knew that banks had made it onerous for young companies like his to obtain debt financing.
"We're in a weird spot" but we have "a decent amount of revenue coming in," says Mr. Vaughn who expects Raveable's sales to grow two to three times annually.
So he's considering an alternative called royalty financing, in which a company pays back a loan using percentage of revenue. Traditionally found in industries such as mining, film production and drug development, royalty financing is being seen more among technology companies and other early-stage firms with growth potential.
To read the full article.. click here.
WSJ.com, December 2, 2010
Entrepreneurs Going the Royalty Route Use a Share of Revenue to Pay Back Loans
By: Scott Austin
When first-time entrepreneur Philip Vaugn recently began searching for start-up capital, he traveled down two conventional paths.
Mr. Vaugn, co-founder of travel-review aggregator Raveable.com in Kirkland, Wash., says he wasn't interested in forking over a large chunk of equity to venture capitalists or committing to ambitious investment-return expectations. He also considered a loan, but knew that banks had made it onerous for young companies like his to obtain debt financing.
"We're in a weird spot" but we have "a decent amount of revenue coming in," says Mr. Vaughn who expects Raveable's sales to grow two to three times annually.
So he's considering an alternative called royalty financing, in which a company pays back a loan using percentage of revenue. Traditionally found in industries such as mining, film production and drug development, royalty financing is being seen more among technology companies and other early-stage firms with growth potential.
To read the full article.. click here.
Thursday, December 30, 2010
Check out: Money is available for small businesses, but it takes work
Posted 11/21/2010 6:00 PM
USAToday.com, Small Business
AskAnExpert: Steve Strauss
Q: I hear that there is more money available these days for Small Business Administration loans. Is that true? If it is, how do I apply to the SBA to get one? Thanks in advance. Maurice
A: Yes, it is true that there are more SBA loan funds available right now than in years past. This is mainly due to 1) a change in administrations, and 2) the fact that both TARP and the new small business law added funding for SBA lending.
To read more... click here.
USAToday.com, Small Business
AskAnExpert: Steve Strauss
Q: I hear that there is more money available these days for Small Business Administration loans. Is that true? If it is, how do I apply to the SBA to get one? Thanks in advance. Maurice
A: Yes, it is true that there are more SBA loan funds available right now than in years past. This is mainly due to 1) a change in administrations, and 2) the fact that both TARP and the new small business law added funding for SBA lending.
To read more... click here.
Tuesday, September 28, 2010
Check out Finding Surprises in the Small-Business Jobs Bill
By: Robb Mandelbaum
New York Times
Business Day - Small Business
Monday, September 27, 2010
Most of the controversy surrounding the small-business jobs bill that cleared the House of Representatives on Thursday - after nearly a year of discussion - concerned a $30 billion small-business lending fund to be established by the Treasury Department.
But like most of the legislation, the lending fund is a temporary fix. It will make investments in banks for just one year. The tax breaks in the bill, worth about $12 billion, are mostly good for a year or two.
But one part of the bill, which President Obama will sign into law on Monday, also makes permanent and far-reaching changes to the Small Business Adminstration's guaranteed loan programs - it both allows banks to make much largers loans and permits bigger businesses to take advantage of them - changes that have not been widely discussed. Taken together, these measures potentially could alter the essential character of the S.B.A.'s borrowers - it could make them not very small.
to read the full article... click here.
New York Times
Business Day - Small Business
Monday, September 27, 2010
Most of the controversy surrounding the small-business jobs bill that cleared the House of Representatives on Thursday - after nearly a year of discussion - concerned a $30 billion small-business lending fund to be established by the Treasury Department.
But like most of the legislation, the lending fund is a temporary fix. It will make investments in banks for just one year. The tax breaks in the bill, worth about $12 billion, are mostly good for a year or two.
But one part of the bill, which President Obama will sign into law on Monday, also makes permanent and far-reaching changes to the Small Business Adminstration's guaranteed loan programs - it both allows banks to make much largers loans and permits bigger businesses to take advantage of them - changes that have not been widely discussed. Taken together, these measures potentially could alter the essential character of the S.B.A.'s borrowers - it could make them not very small.
to read the full article... click here.
Monday, September 27, 2010
Check out Three Best Ways to Use Location-Based Social Media
By Riva Richmond
Wall Street Journal (WSJ.com)
Restaurants, retailers and other small businesses with storefronts are embracing location-based social networks - think Foursquare or Facebook Inc.'s Places - to woo customers and keep them coming back.
The services allow smartphone-toting customers to "check in" to a business or address, and then instantly share that information with friends and connections. Other fast-growing pioneers in the field include Brightkite Inc., Gowalla Inc. and online-review heavyweight Yelp Inc.
Marketing experts say the services offer inexpensive, easy and effective ways for a small business to get its name out and engage customers (see related article, "Getting Customer to 'Check In' With Foursquare"). Foursquare and Yelp currently offer the most developed tools for small companies that want to run promotions, though other services are developing similar ones.
If you want to try location-based service, it's easy to get started. First, find out whether your business is already listed in services popular to your area. If so, claim ownership and make sure the listed information is complete and correct. If not, add the listing yourself.
to read the full article... click here.
Wall Street Journal (WSJ.com)
Restaurants, retailers and other small businesses with storefronts are embracing location-based social networks - think Foursquare or Facebook Inc.'s Places - to woo customers and keep them coming back.
The services allow smartphone-toting customers to "check in" to a business or address, and then instantly share that information with friends and connections. Other fast-growing pioneers in the field include Brightkite Inc., Gowalla Inc. and online-review heavyweight Yelp Inc.
Marketing experts say the services offer inexpensive, easy and effective ways for a small business to get its name out and engage customers (see related article, "Getting Customer to 'Check In' With Foursquare"). Foursquare and Yelp currently offer the most developed tools for small companies that want to run promotions, though other services are developing similar ones.
If you want to try location-based service, it's easy to get started. First, find out whether your business is already listed in services popular to your area. If so, claim ownership and make sure the listed information is complete and correct. If not, add the listing yourself.
to read the full article... click here.
Monday, September 13, 2010
Check out... SBA Program Proves a Hit, but Now It Is in Limbo
By Ruth Simon
August 5, 2010
Wall Street Journal (WSJ.com)
Pinnacle Bank made just two loans through Small Business Administration in 2007 & 2008. So far this year, the Orange City, Fla., bank's total is nine, to borrowers from an auto dealer to a computer-equipment wholesaler to a bakery.
"The SBA program is the only way we can continue to lend right now," says David Bridgeman, president of Pinnacle, which has two branches and assets of $213 million, including about 600 loans. For many of the $3.4 million in loans Pinnacle made through the SBA in 2010, the bank has to set aside capital against only the 10% slice that isn't guaranteed by the U.S. government.
Across the nation, many banks have turned to the SBA's so-called 7(a) program to help unfreeze credit. Nearly 3,000 lenders have made 7(a) loans in the current fiscal year, up 21% from 2008.
The 7(a) program, the SBA's largest loan program, is hardly a cure for the credit shortage affecting many borrowers. The agency is involved in less than 10% of all small-business loans, and some banks won't participate because of red tape. Lenders must follow the SBA's rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.
Last year, Congress temporarily sweetened the 7(a) program by increasing the SBA guarantee to 90% of any given loan from as little as 75% previously. Lawmakers waived fees costing borrowers as much as 3.5% of the loan amount, as well as costs charged in a separate SBA program providing structured financing for fixed assets.
But the sweetened program is now in limbo, drawing complaints from borrowers and lenders, as lawmakers haggle over broader small-business legislation.
To read the full article... click here.
August 5, 2010
Wall Street Journal (WSJ.com)
Pinnacle Bank made just two loans through Small Business Administration in 2007 & 2008. So far this year, the Orange City, Fla., bank's total is nine, to borrowers from an auto dealer to a computer-equipment wholesaler to a bakery.
"The SBA program is the only way we can continue to lend right now," says David Bridgeman, president of Pinnacle, which has two branches and assets of $213 million, including about 600 loans. For many of the $3.4 million in loans Pinnacle made through the SBA in 2010, the bank has to set aside capital against only the 10% slice that isn't guaranteed by the U.S. government.
Across the nation, many banks have turned to the SBA's so-called 7(a) program to help unfreeze credit. Nearly 3,000 lenders have made 7(a) loans in the current fiscal year, up 21% from 2008.
The 7(a) program, the SBA's largest loan program, is hardly a cure for the credit shortage affecting many borrowers. The agency is involved in less than 10% of all small-business loans, and some banks won't participate because of red tape. Lenders must follow the SBA's rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.
Last year, Congress temporarily sweetened the 7(a) program by increasing the SBA guarantee to 90% of any given loan from as little as 75% previously. Lawmakers waived fees costing borrowers as much as 3.5% of the loan amount, as well as costs charged in a separate SBA program providing structured financing for fixed assets.
But the sweetened program is now in limbo, drawing complaints from borrowers and lenders, as lawmakers haggle over broader small-business legislation.
To read the full article... click here.
Tuesday, August 3, 2010
Let's discuss economic "recovery" for local small businesses...
By the local Business Sherpa himself, Larry Battershell.
The longer I talk to small business owners around the Indianapolis area and listen to endless tales of woe, the more convinced I am that the much touted economic "recovery" is not either U shaped or W shaped but more of a descending staircase--down a few steps-plateau, down a few more steps--plateau,etc....guess its better than a fast plunge on free falling elevator....... I will keep looking for the "green shoots".
The longer I talk to small business owners around the Indianapolis area and listen to endless tales of woe, the more convinced I am that the much touted economic "recovery" is not either U shaped or W shaped but more of a descending staircase--down a few steps-plateau, down a few more steps--plateau,etc....guess its better than a fast plunge on free falling elevator....... I will keep looking for the "green shoots".
Friday, July 30, 2010
check out... Getting an SBA Loan: 5 Things You Need to Know
Getting an SBA Loan: 5 Things You Need to Know
Getting a business loan is tough -- especially these days. But the Small Business Administration can still be a great lending partner. How to cut through the red tape and secure an SBA loan.
Chasing a Small Business Administration loan these days is a little like going to a carnival and expecting to win one of those giant stuffed animals. It might happen, but the odds are probably against you. As Christine Reilly, the president of small business lending for CIT, points out, about a year ago, the federal government tinkered with the formula for getting an SBA loan, and for a brief shining time, even during the Great Recession, SBA loans were semi-easy to come by.
Of course, it's still possible to get an SBA loan -- Reilly is the first to admit it -- and it can be a great way to infuse your company with cash. But how can you navigate the red tape and make sure all the effort pays off? Here are five things you need to know.
- Know the lingo.
- Document everything.
- Got collateral?
- Do your homework. Seriously.
- You are not a risk taker
to read the full article … click here.
Saturday, July 17, 2010
Check out Loans to Small Businesses Plummet...
Business Sherpa: "Not so good news on the small business loan front."
Loans to Small Businesses Plummet
Loans backed by the Small Business Administration dropped significantly after stimulus incentives dried up.
By Rachel Leven
AOL Small Business online, 7/14/10
After a noticeable increase thanks to stimulus perks, loans backed by the Small Business Administration tumbled in June after funding for the incentives dried up. The total value of SBA loans made dropped almost two-thirds, from $1.9 billion in May to $647 million in June.
The drop in small-business loans comes amid the ongoing financial reform debate in Congress.
The economic stimulus upped the guarantee on the SBA's flagship 7(a) loans 90 percent instead of 75 percent and reduced or waived fees on the 7(a) and 504 loans. These incentives were added to bolster lending practices after the recession began in 2008.
The Senate is currently considering a small-business reform bill, which would extend support for SBA lending by decreasing fees and increasing guarantees. If it passes the Senate vote, which could occur next week, the bill will then move to the House.
Loans to Small Businesses Plummet
Loans backed by the Small Business Administration dropped significantly after stimulus incentives dried up.
By Rachel Leven
AOL Small Business online, 7/14/10
After a noticeable increase thanks to stimulus perks, loans backed by the Small Business Administration tumbled in June after funding for the incentives dried up. The total value of SBA loans made dropped almost two-thirds, from $1.9 billion in May to $647 million in June.
The drop in small-business loans comes amid the ongoing financial reform debate in Congress.
The economic stimulus upped the guarantee on the SBA's flagship 7(a) loans 90 percent instead of 75 percent and reduced or waived fees on the 7(a) and 504 loans. These incentives were added to bolster lending practices after the recession began in 2008.
The Senate is currently considering a small-business reform bill, which would extend support for SBA lending by decreasing fees and increasing guarantees. If it passes the Senate vote, which could occur next week, the bill will then move to the House.
Thursday, July 15, 2010
Check out And Now, the Tricky Part: Naming Your Small Business - WSJ.com
Business Sherpa: "Hey guys, check out this interesting article..."
And Now, the Tricky Part: Naming Your Business
By EMILY MALTBY
WSJ.com, Small Business
Jake Schwarz, an attorney, spent months trying to settle on a name for his law firm.
He considered using the founders' names, as many law firms do, but "Iida, Schwarz and Prenton" was awkward to spell and pronounce. He contemplated "Lighthouse Law Group" and "Summit Legal Partners" but thought they sounded like motivational posters. Some of the more promising names he mulled were "Consilium" and "Acuity Law Group," but he realized that half his clients, based in Japan, would struggle with the phonetics.
"Literally, I was banging my head against the wall," Mr. Schwarz recalls.
As many entrepreneurs can attest, deciding on a name for a new business is no easy task. One with pizzazz can set a new company apart; one that misses the mark can make a burgeoning start-up fall flat.
The problem, marketing and branding experts agree, is that there is no magic bullet to picking the best name.
To read the full article... click here.
And Now, the Tricky Part: Naming Your Business
By EMILY MALTBY
WSJ.com, Small Business
Jake Schwarz, an attorney, spent months trying to settle on a name for his law firm.
He considered using the founders' names, as many law firms do, but "Iida, Schwarz and Prenton" was awkward to spell and pronounce. He contemplated "Lighthouse Law Group" and "Summit Legal Partners" but thought they sounded like motivational posters. Some of the more promising names he mulled were "Consilium" and "Acuity Law Group," but he realized that half his clients, based in Japan, would struggle with the phonetics.
"Literally, I was banging my head against the wall," Mr. Schwarz recalls.
As many entrepreneurs can attest, deciding on a name for a new business is no easy task. One with pizzazz can set a new company apart; one that misses the mark can make a burgeoning start-up fall flat.
The problem, marketing and branding experts agree, is that there is no magic bullet to picking the best name.
To read the full article... click here.
Tuesday, July 6, 2010
Check out... Get ready for the tanning tax
By Natasha Altamirano, Special to CNN
June 30, 2010 2:02 p.m. EDT
Editor's note: Natasha Altamirano is manager of media relations for the Tax Foundation, a nonprofit, nonpartisan research and educational organization that monitors fiscal policy at the federal, state and local levels.
Washington (CNN) -- Put away those plastic mini-goggles and grab your favorite tube of self-tanner. The first new tax to fund health care reform goes into effect Thursday -- a 10 percent excise tax on indoor tanning services.
The tanning industry is just the latest victim of government paternalism, putting it in the same category as cigarettes, alcohol, gambling, sodas, trans fats, junk food and other targets of so-called "sin taxes."
Desperate for revenue and lacking the guts to curtail big special-interest tax breaks such as the employer-provided health insurance exclusion or the mortgage interest deduction, congressional leaders and the president have singled out a politically vulnerable target. Kind of like a pride of lions singling out the weakest wildebeest.
To read full article… click here.
Friday, June 25, 2010
The SBA Has a Deal for You
It's called a 504 loan. Here's what you need to know about it.
By Marshall Eckblad
Wall Street Journal: Small Business Online
June 21, 2010
The government is trying to entice more small businesses to tap one of its loan programs. Before applying for one of these loans, though, there are some fine points borrowers should consider.
The Small Business Administration's 504 loan program lets companies take out fixed-rate financing to buy property, build or expand facilities, or refinance some existing mortgages. The borrower typically needs to put down just 10% of the transaction's total price.
With the weak economy deterring many small businesses from expanding in the past couple of years, demand for these loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals.
To read more... click here.
By Marshall Eckblad
Wall Street Journal: Small Business Online
June 21, 2010
The government is trying to entice more small businesses to tap one of its loan programs. Before applying for one of these loans, though, there are some fine points borrowers should consider.
The Small Business Administration's 504 loan program lets companies take out fixed-rate financing to buy property, build or expand facilities, or refinance some existing mortgages. The borrower typically needs to put down just 10% of the transaction's total price.
With the weak economy deterring many small businesses from expanding in the past couple of years, demand for these loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals.
To read more... click here.
Wednesday, May 26, 2010
Three Best Ways to Court a Community Bank
By EMILY MALTBY
Wall Street Journal, WSJ.com
Discouraged by big-bank practices and bureaucratic procedures, many Main Street firms have "gone local" with their lenders. Community banks are often more willing than their larger counterparts to conduct business on a handshake because they understand the needs of their neighboring establishments and, in many cases, have underwriters in-house to approve loans.
In exchange, however, those lenders expect more from their borrowers. "It's like that old saying, dig a well before you are thirsty," says Brian Carlson, president of Excel National Bank, a standalone lender in Beverly Hills. "It can take some time before [a banker] says, 'I know this guy and I'm confident he'll do what he says he'll do.' Having that relationship is valuable because if you need $300,000 by the end of the week to take advantage of an opportunity, the bank will jump to get it done."
Here are the three best ways to develop a relationship with a community lender:
To read more... click here.
Wall Street Journal, WSJ.com
Discouraged by big-bank practices and bureaucratic procedures, many Main Street firms have "gone local" with their lenders. Community banks are often more willing than their larger counterparts to conduct business on a handshake because they understand the needs of their neighboring establishments and, in many cases, have underwriters in-house to approve loans.
In exchange, however, those lenders expect more from their borrowers. "It's like that old saying, dig a well before you are thirsty," says Brian Carlson, president of Excel National Bank, a standalone lender in Beverly Hills. "It can take some time before [a banker] says, 'I know this guy and I'm confident he'll do what he says he'll do.' Having that relationship is valuable because if you need $300,000 by the end of the week to take advantage of an opportunity, the bank will jump to get it done."
Here are the three best ways to develop a relationship with a community lender:
To read more... click here.
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