In August, the Chamber hosted its first monthly workshop on Small Business Financing. The workshop was designed to give entrepreneurs a "big picture" view of all their financing options. Attendees had a chance to discuss their specific lending issues while gaining knowledge of all the options they have available to them. Representatives from banking, the SBA and investors were on site to give overviews, tips, advice and to answer questions. One of the overall themes of the workshop was that entrepreneurs need to develop a relationship with their lender. Lenders lend based on facts, but they can also be sold on your vision and your ability to be successful.
Frank Hutchins, vice president of lending for Community National Bank, led a lively and realistic discussion on the world of small business financing. "We're all human," he told the business owners. "We all see things differently. As a banker, I might not be impressed with your presentation, but maybe Gil will be." Gil Evans is vice president and chief lending officer for Vision Capital Corp., a commercial finance company.
"Commercial banks usually offer lower interest rates than other lenders," Hutchins said, "but they also have the strictest standards. On the other hand, they're in business to lend money, so they want to say yes." Hutchins says, most often it comes down to your relationship with your bank. "If they don't believe in you, you may want to find another bank."
Tyler Spoorer, fast track loan officer for First National Bank, reviewed all the different types of SBA loans and the criteria to obtain them. He noted that some SBA loans require detailed applications, a high FICO Score and background checks, while others have simple applications, a lower FICO score requirement and minimal background checks.
Evans reviewed investor loans and introduced the entrepreneurs to a concept that he suggested might be a viable alternative to borrowing, factoring. Factoring is selling accounts receivable at a discount to convert future cash to immediate cash.
The next Small Business Financing Workshop will be held on Wednesday, October 26, 8:00-10:30 a.m., at the Chamber. Please call for reservations, (760) 931-8400.
Frank Hutchins, vice president of lending for Community National Bank, led a lively and realistic discussion on the world of small business financing. "We're all human," he told the business owners. "We all see things differently. As a banker, I might not be impressed with your presentation, but maybe Gil will be." Gil Evans is vice president and chief lending officer for Vision Capital Corp., a commercial finance company.
"Commercial banks usually offer lower interest rates than other lenders," Hutchins said, "but they also have the strictest standards. On the other hand, they're in business to lend money, so they want to say yes." Hutchins says, most often it comes down to your relationship with your bank. "If they don't believe in you, you may want to find another bank."
Tyler Spoorer, fast track loan officer for First National Bank, reviewed all the different types of SBA loans and the criteria to obtain them. He noted that some SBA loans require detailed applications, a high FICO Score and background checks, while others have simple applications, a lower FICO score requirement and minimal background checks.
Evans reviewed investor loans and introduced the entrepreneurs to a concept that he suggested might be a viable alternative to borrowing, factoring. Factoring is selling accounts receivable at a discount to convert future cash to immediate cash.
The next Small Business Financing Workshop will be held on Wednesday, October 26, 8:00-10:30 a.m., at the Chamber. Please call for reservations, (760) 931-8400.