Better Business: Choosing your Lender
Hi, I’m Joe Giordano from Whisman Giordano. Today we’re going to be talking about your lender.
It’s easy to think of lenders as people doing your company a favor, but business financing relationships are just that: relationships. You are as important to them as they are to you. Yes, a lender has the working capital you need to grow, but a stable, successful business represents an enormously beneficial opportunity for the lender as well. So, you should be just as picky with your lender as it is with your financials.
Where to Start
If you indeed have a long-standing relationship with a local bank, they are always going to be your first call. There’s no understating the importance of familiarity, good communication and an amicable rapport when negotiating terms, making payments and dealing with whatever business complications may come up.
However, if your local bank does not offer the size or scope of financing needed, or if you’d just like to get an idea of what else is out there, don’t hesitate to shop around. Don’t be afraid to venture out of your comfort zone. Take risks! Look for a lender with multiple loan products, so you have a better chance at structuring one to your liking. Also, get some referrals regarding the strength of service and support.
If yours is a small business, check into the availability of Small Business Administration or other government-backed loan programs. These are often designed to boost local economies, so you may be able to get favorable terms and rates.
Last, but not least, don’t limit yourself to loans. Today’s lending environment is competitive and technology driven. Businesses have a wide variety of alternatives, many of which are just a few clicks away. These include angel investors, online peer-to-peer lending networks and crowdsourcing.
Many, if not most, companies can’t grow without taking on some debt. How you go about using debt to your advantage depends largely on the lenders with which you choose to do business. Let us play matchmaker and help you find the ideal partner. We can also offer assistance in structuring and presenting your financial statements for best results.
About the author
Joe is a 2004 graduate of Mount Saint Mary’s University, with a bachelor’s degree in accounting. He is also a 2000 graduate of Archmere Academy in Claymont, Delaware. Joe started with the firm in 2002 as a part-time intern, joining full-time in 2004.
Since then, he has worked with a myriad of clients, including entrepreneurial firms, agricultural businesses and nonprofit entities, including those with OMB A-133 audits. Joe, along with the firm, contributes to Toys for Tots, Goodwill Industries, as well as several other community organizations. He is a member of the American Institute of Certified Public Accountants and the Delaware Society of Certified Public Accountants.