subject: The Growing Search For Capital [print this page] Working as a consultant for new and upcoming businesses, I often hear, almost every day, really, just how annoying it is to deal with commercial banks nowadays. Just the other week I had a meeting with a business owner whose business is commercial lighting, and they've been building their business and increasing their companies sales for more than twelve years. His company has experienced excellent growth, has fantastic profit trends, an awesome marketing plan for this year, and has a positive cash flow.
In addition to his financials being in such a good place, his marketing and business plan are very well written and quite polished. Sadly, the most annoying thing for him (and a million other business owners), is that he can't get his banker to call him back. He chose a banker and turned in a loan package to him, and this banker won't even give him a simple phone call back. Ever. He is stringing this entrepreneur out and making him ponder whether or not they'll actually come through for him by giving him the line of credit he'll need to execute his marketing plan.
If any part of this sounds even remotely familiar to you you should start thinking about private money. Based on your growth strategy and financial situation, it might just be easier to raise the funds you need from private investors than to wait for some annoying banker to finally get through your loan package and give you a phone call. The current banking system is a broken one. The majority of bankers seem incapable of making any decision at all, no matter how strong your plan and numbers might be. While it may be true that many a private investor is still licking his wounds and recovering from the stock, commodity, and bond collapse, there's still quite a bit of liquidity out there for the taking. All you need to do is to create your story and plan and meet with investors who are going to be open to investing in your vision, and in you.
