Essay on Financial Crisis And Ensuing Credit Crunch
Amidst all the gloom and doom, however, it 's important to keep one thing in mind: There are still options available for small business financing. It 's simply a matter of knowing where to look and how to prepare.
Where to Look
There are three main sources you can turn to for small business financing:
Commercial Banks - These are the first source most owners think of when they think about small business financing. Banks loan money that must be repaid with interest and usually secured by collateral pledged by the business in case it can 't repay the loan.
On the positive side, debt is relatively inexpensive, especially in today 's low-interest-rate environment. Community banks are often a good place to start your search for small business financing today, since they are generally in better financial condition than big banks. If you do visit a big bank, be sure to talk to someone in the area of the bank that focuses on small business financing and lending.
Keep in mind that it takes more diligence and transparency on the part of small businesses in order to maintain a lending relationship in today 's credit…