by Cathy Sedacca
When they were young, my daughters didn’t like pork chops and refused to eat them. But like any good mother, of course, I didn’t take no for an answer.
I prepared them every possible way and tried to persuade them to give them a second chance.
But it was no to avail. They did not like them.
Not in the rain.
Not on a train.
Not in a house.
Not even with a mouse.
Then one day, during a visit to their grandmother’s house, she put plates of pork chops in front of us at the dinner table.
Before I could even acknowledge the sticky situation, my mother-in-law proudly introduced them as “lady steaks.”
My daughters gobbled them up. And they asked for more.
The power of perception
Today, it’s more than just a fun family memory. It’s also a vivid reminder of the power of perception.
And I think about it often when I talk to business owners who are considering bringing on an investor.
Confronted with an inability to secure bank financing, business owners typically consider two options: asset-based lenders and investors.
I find many of these owners have a negative perception of asset-based lending but a much more positive view of investors.
It’s a misguided perception.
Asset-based lenders vs. investors
It’s true that asset-based lenders offer a source of capital that is more costly than standard bank financing. It’s something that comes with the territory. Although if you pick the right asset-based lender, it may be less expensive than you think. (More on that below.)
In contrast, there’s a perception that raising capital through investors is, by comparison, “free.” In reality, investors often demand equity in the business, making it, perhaps, the most costly kind of financing.
After investing so much time, effort and money into making your own business dream a reality, why open the door to all the long-term complications that come with investors?
With their equity comes a stake in how your business is run. Are you ready to give up any control of your business to these investors?
The right asset-based lender
With the right asset-based lender, on the other hand, you gain access to needed capital with no long-term ramifications.
At Sage, our commitment is to leverage our entrepreneurial insights and resources to get our clients’ businesses back to traditional bank financing as quickly as possible.
And through creative and flexible financing options like blended loans, we are frequently able to secure financing at a lower cost than many clients expect.
So if you’re in need of non-traditional financing, by all means, look into every option available to you and determine the best fit for your needs.
As you do, please contact our team at Sage to learn more about the benefits of working with us, or even if you’d just like to swap lady-steak recipes.
Cathy Sedacca is director of sales and marketing for Sage Business Credit. She partnered with Karen Turnquist to found Sage because she believed they could do what had been done by others, but better. Working closely with clients who share the same vision for their own business is the best part of her job.