After several years of financial market upheaval, banks are once again making loans for viable small business proposals. But as Central Maine SCORE mentor Peter Sassano notes, “The banks are determined not to repeat past mistakes.”
“The fallout from the lax lending decisions of several years ago has led them to focus on the creditworthiness of the business and the entrepreneur,” Sassano said. “You want to show you really have a viable way to generate a return on the investment so that you can pay back the interest and principal on the debt.”
While banks remain a primary small business funding option, entrepreneurs should consider some alternative sources of start-up or expansion capital.
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