Lender Tips of the Week #2: Leverage Proven Ideas to Get a Loan
When it comes to helping companies get small businesses loans, Fundera wants to make the process as easy and transparent as possible for borrowers. Not only do we cut down on the amount of paperwork, but we also find new ways to inform and inspire small business owners.
This is the first in an ongoing series in which we ask our trusted partners to share their best lender tips for prospective borrowers.
This week, Martin Franco, the Director of DLJ Financial’s Equipment Finance and Business Capital Division, reveals that loan requests built around the latest business trends won’t necessarily get funded.
It may seem counter-intuitive, but Franco says it’s better to request funding for old ideas instead of new, untested ones. Established concepts are better, Franco says, because they have proven to be successful. Any idea that appears to be new carries more risk with it.
For instance, lenders are seeing an increase in equipment finance requests in the trucking industry, says Franco. This is a necessity as California has changed their emission requirements, so truckers and trucking companies need to either retrofit their trucks to meet these new emission standards or purchase new trucks.
With the proven success of the food truck industry, we’re also seeing more requests to finance food trucks from restaurant owners who want to get into the food truck business, as well as loan requests from owners of food trucks who would like to open brick-and-mortar restaurants after their success.
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