Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

January 14, 2016

Lending Options for Small Businesses

By Achim Neumann

Securing funding for a small businesses is a process that consumes a great deal of time and patience. However, there are many options available for entrepreneurs to fund their companies these days, making it easier for individuals to proceed with their business plans.

Below, we will discus several ways for business owners to secure the financing they need.


1) Banks and other lending institutions

The first place that many entrepreneurs turn to when it comes to business financing are banks or other private lenders.

In recent years, requirements for lending have tightened; as such, approach financial institutions with a meticulously prepared business plan, and review minimum requirements that they have for approving loans prior to filling out paperwork. Make certain that all conditions are satisfied before proceeding with an in-person meeting.

2) Government loans and grants

Obtaining funding for a small businesses via traditional providers can be difficult. However, some lending institutions work with the federal government to offer SBA loans and grants to entrepreneurs that have trouble qualifying for traditional financing.

With the Small Business Administration guaranteeing loans issued through this program, the chances of being approved through this channel are greater for business people that are experiencing funding issues.

3) Online lending sites

Banks and other lending institutions have long been a hard sell when it comes to providing loans for small business. In recent years though, online lenders have entered the marketplace, increasing competition.

Loan acceptance terms for these providers are more liberal than those of established financial institutions, and loan applications for many sites take up less time than applying for financing through a bank. There are concerns about the liquidity of some providers though, so performing due diligence before proceeding is advised.

4) Crowdfunding campaigns

Emerging in the past five years, crowdfunding campaigns have allowed small business entrepreneurs to approach the general public with their business propositions.

Crowdfunding involves petitioning individual investors with a proposal, usually through a website such as Kickstarter or Indiegogo. In return, entrepreneurs provide investors with rewards that scale with the level of their commitment.

For business people that are seeking equity or debt financing, sites like Fundable provide small business owners with the funding needed to fuel growth, making it the best crowdfunding site for this type of financial need.

5) Vendor credit lines

Keeping inventory at an acceptable level can put the bank balance of small businesses in a precarious position. Taking advantage of vendor credit lines allows companies to order the products they need while deferring payment, allowing them to preserve cash reserves.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or

Comments are closed.

Any questions? Please contact us at 732-872-6777
Call Now

Client Testimonials

“ I appreciate your diligent approach to screening buyers and sellers as well as the high quality CIM that you produce.”

Andrey O, Investor

“Finally enjoying retirement after recently selling my business using the services of A Neumann & Associates. Joe Oddo provided the conduit to a successful transaction. Joe knew when to inject input and when to simply listen and allow the buyers to vent, step back and regroup. The outcome met our expectations and got us to the finish line, which included my staying with the company six months in order for the buyers to get their footing and keep our workforce in the loop. He helped at every step by providing his expert guidance & resources. Thank you!”

Emily Parker Myers, Co-Owner - Myers McRae

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

“Your vetting is simply outstanding, among the best I've seen from a broker.”

Eric H., Investor

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Marc, who explained the process in detail. After meeting with Marc in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using to sell my business for max value. Working with Marc at A Neumann & Associates was very easy and professional. I did not know all that was going to be involved in selling my business but they helped me through the process. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. I highly recommend this firm to anybody who wants to sell now or down the road. Marc not only knows his stuff, but actually is a real nice guy.”

Double Diamond

“Used A Neumann & Associates to sale my business. could not imagine having done it with out the patience and experience Gary provided. Thanks Gary,”

Dennis Frazier

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi
view all testimonials

Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

call us now
Contact Us for a Free, Confidential Consultation

Experienced M&A Advisors available

Full Name
Email Address
Phone Number