Upsize is a magazine with a single mission: to help Minnesota's small-business owners build bigger and more profitable companies, and to connect CEOs with the people, products and ideas they need to grow.
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HOW TO Finance ity. One of the biggest things that small businesses are telling us is their primary problem is generating sales. But one of the things we concentrate on is trends. A good business can absorb a loss of sales, but if they're extremely well managed and they are concentrating on margins, even if sales are dropping, the bank can say this is a good loan. But only if the banker really under- stands what's going on, and that banker is able to relay that analysis to the decision- makers at the bank." NEW PRODUCTS: "Consider alternative sources in addition to conventional bank products. In my case, I work a lot with SBA products, and right now SBA is probably the primary source of credit for these businesses in this environment. The Small Business Administration has come out with some new products. For example, the Caplines program is brand new, which will provide working capital to businesses that otherwise would need to factor. It's working capital lines for businesses that sell and hold accounts receivable. The old programs were limited to $350,000; this one goes up to $6 million." 3. RICK WALL, Highland Bank: HEALTH OF CUSTOMERS: "When the markets really declined and business slowed across the whole economy in the 08/09 time frame, there were businesses that were proactive and made changes. And those that made decisions quickly are doing better than those who were slower. Those businesses figured out how to live at a lower cost level, and they're healthy. The ones that lagged are not as far through the problems." WHAT'S DIFFERENT: "Clearly bankers are making certain that they're covered in terms of their documentation, and they're monitoring their credits, because A, it's good business, and B, no bank can afford any addi- tional regulatory problems. The regulators are not the reason; they are just the addi- tional reason. The real reason is because you want to make sound decisions for your bank." 4. BRIDGET MANAHAN, Western Bank: ACTIVITY IN 2012: "We are very actively seeking opportunities to make commercial loans. We are actively looking at our current customer base, and we're actively seeking new prospects as well. The businesses we are speaking with, if they have experienced a downturn related to the economy, they seem to have stabilized, and so often they are looking at expanding their businesses in some way, and this is an opportunity to re-examine their banking relationship." ADVICE FOR OWNERS: "This is a rela- tionship business, and so the more that a business owner can share about the busi- ness, and the more we can share with the business owner about mutual expectations and how we process decisions, I think the better the relationship. We like to look at a business from all per- spectives. We hope that business owners S Y S T E M S I N C O R P O R A T E D 7665 Washington Avenue South, Edina, MN 55436 www.mwmlg.com S Y S T E M S I N C O R P O R A T E D Presorted Mail Services Mail Fulfillment Mailroom Supplies Mailroom Equipment Keep In Touch With Your Customers... Your Competition Is! 18 UPSIZE ONLINE THE GROWTH GUIDE 2012 www.upsizemag.com 952.925.4333