Originally published in Entrepreneur Magazine

By Mark Abell

For small businesses, 2018 looks like a great time to expand. Corporate tax rates have been cut significantly, accelerated depreciation rules are encouraging capital investment, and the economy is showing signs of sustained strength.

The first question owners should ask is whether to use debt or equity to meet their capital needs. Let’s start by looking at some common debt options: Conventional bank debt, SBA-guaranteed debt (my personal favorite, but not the best fit in every case), and factoring and other forms of non-bank lending.

Conventional debt for proven businesses

Getting the right type of financing begins with an honest assessment of the five C’s: capital, collateral, conditions, creditworthiness and cash flow. These are the factors that banks use to determine if the business qualifies for bank debt.

Read the full article at https://www.entrepreneur.com/article/309471

Mark Abell is Senior Vice President and SBA Division Director at NBH Bank.