A new website connects capital-starved entrepreneurs who want to form an LLC with lenders willing to finance the business, thus reducing the paperwork and man-hours that more traditional borrowing strategies required.
Robert Tannenhauser, who spent 15 years managing a small business lending firm in Manhattan, is the founder of BoeFly.com. He told the Newark Star-Ledger that his website has brokered almost $1 billion in small business loans since the company''s inception in March 2010.
"We''re kind of like a dating service," Tannenhauser told the Star-Ledger. "What we''re doing is cutting out the inefficiency."
Both entrepreneurs looking for cash and lenders seeking investments can post their details on the website. Computer matches are made, often bringing together business partners that otherwise might not have found each other.
"We''ve had businesses in Michigan working with lenders in Texas," Tannenhauser told the paper. "We''ve also had borrowers connecting with lenders four miles away that they didn’t even know about."
A recent survey of banking officers by the U.S. Federal Reserve revealed that rates have improved over the last quarter.
As many as 20 percent of U.S. banks reported that loan terms are becoming looser - the first positive change since 2006.
Tags : az, c corp, ca, financial management, llc, lp, ny, s corp, small business management, tx
Posted: Aug 19th, 2010