12/09/14

Where to Go When The Bank Says No to Small Business Finance

I had the opportunity to speak to Charles Green, the Founder of the Small Business Finance Institute.  The mission of the Small Business Finance Institute is to provide the latest news and trends around Small Business Lending. It’s always a pleasure to speak with Charles.

Finding the right small business finance can be time consuming in the current economic environment. In a recent study by Harvard, former U.S. Small Business Administrator, Karen Mills, discusses many of the current challenges and stats of getting small business loans. A small business owner can spend as much as 26 hours trying to get business capital to grow.

Here at Lendio, we are on a mission to decrease the amount of time is takes to find and secure business financing. You can watch the video above to learn what you can do when your bank says no to your small business loan.

You can read my interview with Charles Below:

TRANSCRIPT:

CHARLES GREEN: I’m Charles Green with AdviceOnLoan and I’m with Burke Alder of Lendio.com. Burke, you talk a lot about the customer experience and the small business owners that come to Lendio for funding. I was interested to learn more about the stories that you hear.

BURKE ALDER: Yeah. Every day, we have hundreds and every month, thousands of business owners that come to our platform looking for financing. Our vision is providing all the options in one place. So, if they are a start up to 3 or 4 years in business, we have all those options available in one place so they get the best deal.

CHARLES GREEN: Right. Do you sense that some of the other lenders that they stop through first aren’t listening?

BURKE ALDER: You know I don’t know if it’s not that they’re listening but there is a challenge right now that exists in the market which is typically, the small business owners, when they need financing, they go to the partner that they’ve been banking with for their whole life. And they come in and they sit down very quickly, maybe their credits, or their time in business, or their revenue, or there’s just something about the borrower that maybe that bank doesn’t really meet that thing’s criteria and many times they have to say no. But when they say no, typically they have an opportunity there which is they could actually refer them over to Lendio. Lendio has all options and we can actually take borrowers of all types and help to get financing. So, instead of saying no, they could actually say yes and really help with the reputation of the bank.

CHARLES GREEN: Okay. One that is a challenge to business owners is that there are a lot of financing products that are appropriate and various kinds of businesses and needs of others. How does Lendio deal with that?

BURKE ALDER: First, we make it pretty really simple. Our vision is, hey, how do we make small business and getting along and simple? And so, business comes to our platform and they just answer few questions, and based off of their profiles or answers, we have an algorithm that really matches them to options available. We show them how long it would take to get the money. We show them the rates. We show them everything really in one location so they can make an educated decision. We do one more thing even better than that though. We believe not only technology but trust is human and actually, every person that gets to our platform has an opportunity to talk to Lendio loan specialist who guides them through the entire process to make sure that there’s no questions on how much the loan is going to cost or really helping them determine what is the right type of capital for them at the right time.

CHARLES GREEN: Interesting. Burke Alder, thank you for talking with me.

BURKE ALDER: Thanks Charles, always a pleasure. Thank you for all you do.

If you liked this article, you might like 3 Questions Business Owners Have About Small Business Loans

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About the author

Burke Alder
Burke is passionate about strengthening America through small business and entrepreneurial growth. He has spent over 20 years in the pursuit of learning, developing, and executing principles and strategies that drive high-performance and explosive business growth. Burke writes about business financing, leadership, marketing, teamwork, and productivity. You can follow Burke on twitter here.

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