Entrepreneurs Starting New Businesses with Installment Loans

The entrepreneurial approach to the economy

Just because we are in a recession doesn’t mean there aren’t some brave entrepreneurs who are starting businesses with installment loans. Despite the economy’s condition, many people are looking to start businesses as a way to become financially self-sufficient. With the 19 biggest banks under heavy government scrutiny, lending options are sparse. But, this isn’t stopping the resourceful entrepreneur.

Is there a silver lining?

The Entrepreneur-Connect website stated that “During an economic downturn, there’s a slower pace, it’s easier to get good policies in place, there are better people available in the job pool and the employer is in control of salary demand. It is harder to find customers, but easier to please them because they will tell you exactly what they are looking for.” This is just the entrepreneurial mindset in a recession. Entrepreneur-Connect’s website gives twelve essential rules to follow when forming a business, despite the economic climate.

1. The business needs to mix well with the owners’ personal life plans
2. The business owners must be passionate about the business and the market they are in
3. Make the owners’ strengths the foundation for the business. Understand deficiencies and hire people to compensate.
4. Know the market – including the industry, competition and customers
5. Create a working business plan that’s able to grow with the company
6. Create more than adequate funding
7. Network with others in the industry, possibly find a mentor
8. Understand the financial limits of the business and don’t stretch beyond them
9. Be involved; be proactive in the business
10. Give customers consistently good service/product
11. Review the business model and market consistently throughout every year of operation
12. Have contingency plans to acclimate to changes in the market

The benefit of following these rules is that they work in any economy and will serve their users well. Entrepreneur-Connect states, “most business owners are not entrepreneurs, they are managers at best. Creating a business out of nothing takes a skill set that surpasses that of managing an operation based upon another’s idea.”

Another difference between a business owner and an entrepreneur is that the entrepreneur has to be resourceful. Many businesses in the recessive economy fold voluntarily because they haven’t the experience or courage to maneuver the market. “Entrepreneurs are going through the same lending freeze all businesses are being effected by, but they know that bank lending is not the only option for funding,” says George Mason, CEO for Entrepreneur-Connect. “There are short-term loans, or installment loan options that entrepreneurs are resourceful enough to know about and utilize.”

The new entrepreneur entering the market

It remains to be seen how well new businesses will do in the recession. It’s almost a given that the economy will change for the better, but the question remains when will it happen. The traditional way of funding a new business is to find a bank loan or personal loan. Banks however are no longer a readily available option in the economy and even well-qualified borrowers are finding it difficult to procure an underwriter.

One option business owners are looking to are installment loans. They are quick and simple for the qualified applicant. The nature of the loan makes it advantageous to both the lender and the potential borrower. Mason added, “Funding is one thing that entrepreneurs are highly skilled at finding. Get into a roundtable with a group of them and a slew of funding ideas will get thrown out. You can’t roadblock a true entrepreneur. They’ll find a way around it.”