18 FABRICARE Filling The Lending Gap How To Land A Business Loan From Nonbank Sources By Phillip M. Perry WHEN SEEKING A BUSINESS LOAN, TO WHOM DO YOU TURN? Most likely the corner banker who holds your checking account. That person knows your enterprise best and has a vested interest in its success. Even the friendliest local banker, though, might respond to a loan request with a resounding “No.” Why? Because of the regulatory environment: The nation’s financial meltdown a decade ago sparked a network of tighter lending rules that still hamper the flow of money. “Prior to the recession of 2008, conventional lending was booming,” said Parag Nevatia, CEO of EZ Funding Solutions, Metuchen, New Jersey (ezfundingsolutions.com). “If you had six months of business history and receivables, banks would throw you money. Then came the financial crisis and conventional financing froze. Bankers started asking for cash flow, credit score, and collateral. If any one of the three was missing, you were out of luck.” continued on page 19 COVER FOCUS ABSTRACT: Alternative lenders may extend critical financing when commercial banks reject a loan application. Before accepting money from nonbank platforms, though, borrowers should perform due diligence, assessing each organization’s reputation for fair dealing. The benefits of easy and quick money must be balanced against the negatives of higher interest rates, costly service fees, and late payment penalties.