Sometimes it is necessary to actually borrow money, but a bank is not the only source. She counted a number of businesses amongst her regular customers - funeral homes, wedding organizers, and so on. As these businesses had grown, so Flowers and More grew. Now, Delores needed a second cool-storage unit to handle the extra demand. Her bank would not agree to finance it, even though the extra equipment would increase sales and boost profitability.
Finance companies are sometimes more flexible than main street banks for business financing.
Where a bank might want fixed collateral for your loan, a finance company will often consider future commitments as viable backing. Another commonly overlooked source of money is the manufacturer. Whenever applying to a lender, always explain precisely what you will use the money for, and how you intend to pay it back. These are the two main concerns any lender has. This florist satisfied those requirements with the advance purchase orders she obtained.