Business financing: persistence pays off

Even during good economic times, obtaining a business loan – particularly a business acquisition loan – can be difficult.  I know a business buyer who was told “no” by 6 banks, but obtained financing from a seventh bank.

Not every lender is going to be a good match for, or have an appetite, for the same types of loans.  Consequently, if you are seeking a business loan you should plan on the possibility of having to seek funding from multiple sources.

In today’s Wall Street Journal article, “Entrepreneurs find success with specialty lenders“, it suggests that business borrowers may do well to seek out banks that have a higher concentration of customers from the industry of the borrower’s business.