For those small business owners that think a small business loan is out of their reach – prepare to be inspired.
Jake Fitzsimmons, opened a hamburger bar in Colorado in 2010. He thought the odds of obtaining a loan were so low that he often asked himself, “why even bother [applying]?” However, because he had successfully opened two previous locations – neither of which required taking out a bank loan – he was able to make the case that he was an ideal candidate for a $500,000 loan, based on his demonstrated business acumen.
Along with the help of the East Colorado Small Business Development Center, he had four different banks – including the bank he does his deposits – bid on his request for a $500,000 loan. Fitzsimmons was able to find the lowest rate, offered to him because of his past success has a small business owner.
Jake’s story is an interesting one, and suggests finding financing sometimes requires both a little creativity and a strong track record.
Keri Gohman, executive vice president and head of small-business banking for Capital One, recently spoke about the state of small business loans right now. She noted that “it’s actually a really great time to access small-business capital,” partially because banks and non-bank lenders alike are offering attractive, competitive loan rates. She concluded her interview with some notes that will surely brighten small business owner’s days: she promises that lending rates are lower than ever, and that it’s simple for any small business owner to shop around and find a competitive loan rate.
Have you tried a unique approach to accessing capital like Jake did? If so, let us know!