There's a new philosophy in banking these days you can use to get money to expand your existing small or home-based business. It's called a variety of names, but basically it's a 'FAX Approval Expansion Loan'. Note: This new product is not for start-ups, just existing businesses that have been in business at least two years. It also won't provide operating cash, it's just for capital equipment expansion.

Do you need 'just a little' money for expansion equipment? Have you been turned down by most of your standard capital sources? Well, this leasing product has the capability of becoming a business saver for many small businesses in need of capital equipment of all types. Here are the details.

THE SMALL BUSINESS QUANDARY
Most small businesses have a problem financing small ticket items, especially three to five year lease packages under $50,000. The amount is far too tiny for most banks to want to process the horrendously complicated SBA loan package, this figure usually being $200,000 or so. It's also too small for most banks to finance under their own business program, this figure usually starting around $100,000.

THE USUAL ANSWER
So they offer you the standard 'banker pap' of: "Well, if your credit is good, we can make a personal loan, but of course this could only be for twelve to eighteen months." or, "Have you talked with your friends and relatives?" or, "Okay, but we need 25% down." We go away thinking if our credit was that good, we wouldn't come to the bank! We're doing okay, but we need new equipment to stay competitive, and unless we can expand, it could mean the business we worked so hard to get where it is, could disappear.

THE BASIC CONSIDERATION
There are many businesses owned by people like who have weathered the first two years of business and are on the road to success, albeit a rocky road. Although your credit is not excellent, you always pay your bills. What you need now is capital equipment, and the usual terms from vendor leasing companies seem usurious (and they often are)! You feel captive to one supplier because of leasing contacts, and you often have to settle for second best as a result.

THE NEW BANK PACKAGE
Some banks, and I emphasize some, are implementing a small-dollar low-maintenance leasing package covering selected products for highly selected industries. For example, computers, presses, construction equipment, and other tangible property are eligible, but the answer will be "No!" for vehicles. The companies covered include most standard businesses, but if you own a restaurant or similar high-turnover business, you may be excluded from this program.

HOW IT WORKS
You, the business person, call the bank and ask them to FAX you an application. The application asks for a minimum information such as trade and bank references: no financial statements, no projected income, no burdensome paperwork. It would also ask you to identify the type of equipment you wish to purchase, and the anticipated purchase amount.

Most banks offering this new package will only check local credit bureaus and look at your Dun & Bradsteet rating. If they are reasonable (not much more than that!), the bank would FAX an approval and tell you to go shopping.

YOUR BENEFITS
You shop where you wish, with cash behind you, bargaining for the best deal. When you settle on your purchase, call the bank and walk out with your new equipment. That's it!

VENDOR SIGNUP
This product depends on the vendor of your equipment agreeing to live by the bank's rules, which are not onerous. The aim is to help vendors sell their capital-intensive products to qualified small business people. There are no finders fees involved for the vendor or the vendor's salesperson; just a good, solid, inexpensive, and quick way to sell their products.

MORE INFORMATION
Don't call me, call your bank. Many banks have designed similar programs, so your job is to shop-around and find one that offers what you need. Your local small-town bank is just as liable to offer this as the mega-bank that just bought-out the other three in the area, so keep on looking.