Entrepreneurial Institute: Take Advantage of Non-Traditional Funding
The small business capital market is messy today, but a breadth of financing options exist, including some that place less emphasis on credit scores, NBMBAA members learned Wednesday at the "Are You a Gold Digger? Discovering Your Financing Options" panel session during the Entrepreneurial Institute®. Fundwell "is the match.com for small businesses, we connect you to online professionals" with an online application that takes two minutes," said Chinwe Onyeagoro, the company's CEO and founder. Fundwell works with more than 200 funders nationwide to help small businesses identify and access grants, loans and financing. Kabbage, a new technology company, offers loans starting as low as $12,000 to grow e-commerce businesses, said Pete Steger, the company's senior business development manager. Credit scores are not a major factor and the application is online. It has advanced more than $35 million dollars in the last 18 months. The Goldman Sachs 10,000 Small Business Initiative has set aside $500 million in non-traditional financing. In Chicago, for example, $20 million has been set aside in amounts typically ranging from $50,000 to $750,000, said Bral Spight, executive director of the Chicago program. Shaun Coard, senior vice president and business manager in Houston for Wells Fargo, urged entrepreneurs to develop a relationship with a banking professional so that if you don't qualify for a loan now, you will down the road. She manages a team of bankers who work with owner-managed companies to offer financial solutions for their businesses. Credit scores do matter when applying for their loans, she said. If the business is new, you need an average balance that exceeds what you're looking for when requesting a loan from Wells Fargo. Panelists also shared a list of do’s and don'ts for entrepreneurs:
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