Show Us The Money

>>There’s a credit desert out there. Businesses thirsting to capitalize growth or even start in this grim economic climate face a steep uphill battle when it comes to funding. Banks, the traditional funding source, have slashed lending, and the loans they do offer carry new, stringent criteria.

"You’re lucky to get a free pen out of them at this point," says Sean Snaith, economic forecaster for the University of Central Florida and head of the Institute for Economic Competitiveness.

Banks based in Lee and Collier counties are staggering under bad real estate debt. That isn’t the only problem, says Neil Shnider, a financial analyst and winter resident of Bonita Springs who works with small businesses and banks around the country. Risk analysts, who determine their financial institutions’ lending guidelines, are eliminating or dramatically cutting lines of credit, he says.

Government bailouts in the banking industry are slowly starting to loosen the credit knot; however, it’s uncertain how much relief will trickle down to small business and how quickly.

Alternate funding sources and strategies can help your business survive and even thrive, if they are the right match. Here are some options:

Help from business organizations

SCORE provides free mentoring and low-cost workshops and seminars. It also helps small businesses find financing and watch their financials for trends and warning signals, says Gregory Nelson, chairman of SCORE Naples. Online tools provide guidance on a range of topics, including securing funding and managing cash flow. For instance, The Financial Management Workbook, available at www.score.org and at SCORE offices, covers subjects such as "knowing your funding options." Through Ask SCORE (www.askscore.org), business owners can connect online with a knowledgeable SCORE mentor and receive advice within 48 hours.

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