Financing and Capital Markets

Build Relationships and Explore Financing Options to Access Capital

Build Relationships and Explore Financing Options to Access Capital
 

To fund growth, new jobs and capital expenditures, small business owners need access to capital. And yet, 91 percent of successful entrepreneurs cite the difficulty of raising capital as a top barrier to success.1

Many well-positioned growth businesses and promising start-ups don’t meet all the criteria for standard bank loans in terms of collateral, equity or experience. It is critical to the success of your business that you develop a methodical plan for exploring and securing capital.

Accessing capital with agreeable terms can be time-consuming and challenging, particularly for undercapitalized growth companies and early-stage businesses. The path to a sustainable business depends largely in establishing working relationships with local bankers and developing business plans that successfully pay off capital financing. It appears that many business owners give up on the idea of access to outside capital, rather than accept how critical it is for success.

The challenges of access to capital have broad economic implications. Statistics from the Small Business Association show there is a direct correlation between access to capital and job growth. About 46 percent of business owners who seek capital indicate they would invest in new employees and equipment if capital were available at the right terms.2

Owners are leaving access to a viable source of capital on the table for countless reasons, including the fears that they won’t qualify and of getting overwhelmed by the required paperwork. More than 80 percent of owners do not consider flexible and affordable alternative options, such as Small Business Administration loans or supplier financing.3 It’s important for you to explore financing options and build relationships with banks and non-banks with expertise and products for small businesses.

1 The Kaufman Foundation Entrepreneurship and Economic Recovery Survey of 300 Entrepreneurs, 2009.

2 SunTrust survey of 423 business owners, 2009.

3 National Small Business Association 2010 Year-End Economic Report.

About SunTrust Business Owner Research: SunTrust surveys small business owners and advisors as part of its ongoing business seminars and symposiums. The small business owners attending these events include both SunTrust client and non-client business owners and are representative of the broad spectrum of businesses located in the SunTrust markets. The research cited in this report is extracted from these 5,425 small business owner surveys collected between 2007 and 2011.

This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

Related

What's New

 

Investment and Insurance Products:

Are Not FDIC or any other Government Agency Insured   Are Not Bank Guaranteed  May Lose Value 

© 2018 SunTrust Banks, Inc.

equal housing logoEqual Housing Lender. SunTrust Bank - NMLS #93471. Member FDIC.

SunTrust, SunTrust PortfolioView, SunTrust Robinson Humphrey, SunTrust Premier Program, AMC Pinnacle, AMC Premier, Access 3, Signature Advantage Brokerage, Custom Choice Loan and SunTrust SummitView are trademarks of SunTrust Banks, Inc. All rights reserved. All other trademarks are the property of their respective owners.

Services provided by the following affiliates of SunTrust Banks, Inc.: Banking products and services are provided by SunTrust Bank, Member FDIC. Trust and investment management services are provided by SunTrust Bank, SunTrust Delaware Trust Company and SunTrust Banks Trust Company (Cayman) Limited. Securities, brokerage accounts and insurance (including annuities) are offered by SunTrust Investment Services, Inc., a SEC registered broker-dealer, member FINRA, SIPC, and a licensed insurance agency. Investment advisory services are offered by SunTrust Advisory Services, Inc., a SEC registered adviser. GFO Advisory Services, LLC is a SEC registered investment adviser that provides investment advisory services to a group of private investment funds and other non-investment advisory services to affiliates. Mortgage products and services are offered through SunTrust Mortgage, a tradename for SunTrust Bank, and loans are made by SunTrust Bank.

"SunTrust Advisors" may be officers and/or associated persons of the following affiliates of SunTrust Banks, Inc.: SunTrust Bank, our commercial bank, which provides banking, trust and asset management services; SunTrust Investment Services, Inc., a registered broker-dealer, which is a member of FINRA and SIPC, and a licensed insurance agency, and which provides securities, annuities and life insurance products; SunTrust Advisory Services, Inc., a SEC registered investment adviser which provides Investment Advisory services.

SunTrust Private Wealth Management, International Wealth Management, Business Owner Specialty Group, Sports and Entertainment Group, and Legal and Medical Specialty Groups and GenSpring are marketing names used by SunTrust Bank, SunTrust Banks Trust Company (Cayman) Limited, SunTrust Delaware Trust Company, SunTrust Investment Services, Inc., and SunTrust Advisory Services, Inc.

SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of SunTrust Banks, Inc. and its subsidiaries, including SunTrust Robinson Humphrey, Inc., member FINRA and SIPC.

CLOSE ✕