Finding a business loan has never been easy, but in the next year, it will get increasingly expensive and more difficult for the following 3 reasons (there are more but this article is limited to the most significant issues)…. There is much more volatility than the US and other major governments are letting people know. Europe and Japan continue to struggle and the major anchors of the BRIC nations like the China and India are slowing down in major ways as well. Simply put, countries slow, currencies get weaker (typically), markets become more volatile, and this results in loans becoming scarce.
If you are a business owner, small or large, you have to understand how this economic news trickles down to your business…even the likes of Apple, Sony, etc are affected in the same manner.
Why you should find your financing now?
1. US Government as well as other keep devaluing our currency and our economy by printing $100s of Billions per month to influence our markets and pay bills with money they don’t have….these actions will continue to push interest rates up and add to market confusion.
2. The Volatility in the Stock Market will continue to worsen creating tighter credit standards when most traditional lenders are already on the fence about lending to business.
3. Political stability in the world continues to be a major problem and with US Administration/ leaders that lack the obvious experience to lead, it is only a matter of time that we have more catastrophic situations… no new lending happens in this environment.
No matter how good you think you are, if you do not have a seasoned relationship with a lender NOW…you are at risk. Don’t fool yourself…Apple couldn’t and you cant either.
Stephen Perl, MS , MBA
CEO 1st PMF Bancorp
