The U.S. economy’s worst recession in the post-war era has begun to turn for the better. Yet, despite the fact that the doom and gloom of the past 20-plus months may be behind us, entrepreneurs seeking to buy businesses still find it difficult to get banks to finance their purchases.
Fortunately, there are a multitude of other options available to business buyers and they center on an entrepreneur’s ability to use creative financing for his or her purchase.
Using Other People’s Money
The vast majority of small business entrepreneurs do not have enough capital to buy a business outright, and banks can present insurmountable barriers.…
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It used to be that even upstart businesses with no credit history could secure $50,000 lines of credit with no documentation. Bank of America began such a program in 2006. And since then, other banks followed suit offering $50,000 and $100,000 loans to new and un-proven businesses. In a press release at the time, Bank of America stated that even “a small business owner in business for only one day could qualify” for its $100,000 line of credit program.
Another large credit card company this week launched a business credit card to specifically meet the needs of small business owners. This launch is yet more proof of how fast the small business segment is growing and contributing to the U.S. economy.
