Business Lenders Teach Clients To Find Other Capital?

By Charles H. Green

It’s always easier for business lenders to say ‘no,’ particularly if by saying ‘yes’ means you have to roll up your sleeves and work with a client for several months to get their objectives fully met.

In his weekly column at, Ty Kiisel relates a story about a neighborhood bicycle sbfi chart icon1store to illustrate an often overlooked source of business financing: trade suppliers. We all know there are many sources of funding for various business uses, and for us, it’s all crystal clear which capital source is appropriate for which business purpose.

As clear, we recognize that most business owners don’t make these distinctions as easily. Maybe that’s really part of your job – teaching your client how to find capital in other places than your company. Getting them familiar with different funding streams that supply the funds you can’t will make it easier for them to navigate for money to manage and grow their business.

In that way, they’ll learn why you can’t be a one-stop shop for a building loan, receivable financing and small computer lease all rolled up into one transaction. You’ll still get a deal, it just may be smaller one than originally discussed, and the client winds up with a better balance sheet full of well-structured financing products.

Business lenders sometimes need reminding that were it not for clients, we wouldn’t be in business. All clients can’t be ‘easy-as-pie,’ lest lenders would have lower cost hourly people doing your job. Sometimes what’s in the client’s best interest will mean you work harder than usual for a smaller reward.

But hey, that’s why they pay you the big bucks, right?

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