Small Business Trends Radio

Finance Your Business Without the Crutch of Real Estate Inflation

EntrepreneursFebruary 14, 2012By

Charles GreenMillions of entrepreneurs have relied on years of real estate inflation to ensure financing in their business. Home equity and commercial property value increases created overnight piggy banks to withdraw capital from to use in operating businesses. Those days are long gone with millions of foreclosed homes and hundreds of closed, crippled banks.

Small Business Finance InstituteCharles H. Green, recovering banker and Executive Director of the Small Business Finance Institute joins Anita Campbell to explore how a small business can finance growth without collateral and where to turn when the bank is weaker than the borrower.

Below are the questions we asked Charles:

  • (3:09) Charles, can you tell us a bit about yourself and your background and how you got into this business?
  • (4:17) So you founded and served as President and CEO of Sunrise Bank.  Can you tell us a little bit more about that?
  • (5:18) Can you explain how real estate inflation provided business financing?  If the real estate was there and you could draw on it for a loan, is that a bad thing?  What was really happening?
  • (7:28) Is it the same thing that happend in the late 80’s and early 90’s?
  • (9:03) Are there any banks that are actually lending to small businesses today?
  • (10:00) Where do you go today if you’re an entrepreneur or small business that needs financing and you don’t want to tap into your home’s equity, where do you turn?
  • (11:31) How do you know which banks to approach or which of these forms of alternative lending to go to?
  • (13:42) You mention the eBay for loans.  What were you referring too?
  • (15:14) What about alternative sources like Angel Investors?  Is that a realistic source for many small businesses?
  • (17:20) What that realistically means is that is going to be a fairly limited group of businesses that are going to be attractive to Angel Investors.  Would you agree?
  • (18:42) What are some of the other alternatives?  What do you think of tapping into a 401K or retirement funds?  Is it risky or a last resort?
  • (21:42) What do you think about credit cards as a source of funds?  How realistic is that for a small business owner?
  • (23:42) Bottom line, what advice would you recap with for small business owners?  In general, what would you say to them?
  • (25:18) Where can people find out more about your company online?

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Listen to the interview with Charles now by clicking the red and yellow player

One Response to “Finance Your Business Without the Crutch of Real Estate Inflation”

  1. Martin Lindeskog Says:

    It is interesting to see how new services could make the capital working for your business like the example with The Receivables Exchange. I have to head over to Small Business Finance Institute’s site and learn more about financial education for small business owners.

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