When Looking for Financing, Look Beyond Interest Rate
Business owners seeking financing most likely go to banks first as they have the most competitive pricing. If bank financing is not an option (i.e., the business is under-capitalized, has losses, is growing too fast), there are a variety of other options, each with different pricing structures that are typically more expensive than bank pricing. However, pricing should not be your main concern.
The most important thing to consider when financing your business is to look for the type of financing that provides you with the most availability, the most flexibility and is most appropriate for your business. Cheaper pricing usually has tighter parameters attached to it that may not work well for your business needs. Plus, covenant fees and default fees that are added in make the deal not as cheap as you may think.
When evaluating financing options, think about which has the least onerous terms so that you can run your business as you want to, not within confines that don’t make sense for the dynamics of your business. Financing should fit your needs and that’s not always the least expensive option.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.