 Gary
Pollard, Assistant Vice President of Hudson River Bank &
Trust's Commercial Loan Department was the presenter in class
number three of the Columbia Hudson Partnership's eight-week
MicroBusiness Seminar Series. Mr. Pollard's topic was 'Financing
Your Business'. He spoke about the various sources of commercial
and personal financing available from local banks and credit
unions, as well as the Columbia Hudson Partnership.
Hudson River
Bank and Trust is the largest commercial bank in the capital
district that also has its headquarters here. Its branches are
spread throughout an 11-county area. In addition to commercial
loans, the bank offers a wide range of services to business,
including small business checking and an accounts receivable
management program.
Participants
in the class are individuals who were accepted into the MicroBusiness
Seminar Series based on the strength of their business plan
or commitment to starting a new business in Columbia County.
The series is administered by the Columbia Hudson Partnership,
and is offered three times a year. There are eighteen entrepreneurs
enrolled in the current session. They are:
-
Marjan
Bebee of Dutch Desserts
-
Donna Bemiss of Chatham Village Historical Society
-
Barbara Bobrowich, who is opening a boarding kennel that will
also provide field training for dogs
-
Christina Brown of Cricket's Creations
-
Lillian Calderon, in-home manicures
-
Corrine Curry of Cortelu, a classical music rental company
-
Felicita Donahue, who plans to open a café
-
Margaret Eaton of Secret Gardiner
-
Alan Hamilton, owner of Diamond Street Restoration
-
Leslie Jamieson, who is planning a shop featuring vintage
clothing and art
-
Zenaida Kameni, who hopes to open an ethnic market
-
Nancy Kohler will be starting an arts school
-
Lisa Light of Destination Bride
-
Richard Marsters, an artist specializing in art furniture
and murals
-
Sandra Miller, a massage therapist
-
Donna White of White Deer Gardens
-
Philip Widget, owner of Pyramid Builders
-
Vladimir Pleshakov of Pleshakov Music Center and Pleshakov
Recording Studio.
Mr. Pollard
spoke about the fundamentals of commercial credit to the class.
His presentation focused on capitalization, lines of credit,
leasing, collateral and guarantees. He also discussed alternative
sources of financing for small businesses, such as home equity
loans.
Planning,
organization and communication.
Those
three qualities, according to Mr. Pollard, are what will help
a business owner get the financing required to keep their business
on an even keel. He also suggested reviewing your credit report
before applying for a bank loan. 'Making your loan officer aware
of a potential problem with a credit report is part of good
communication. If a past credit problem has been resolved, make
sure that information is reflected on the report.' Be persistent
when correcting information on a credit report, Mr. Pollard
advised, as credit reporting agencies can be slow to take action.
|
What
about start-ups -- businesses just getting off the ground -- that
may not have a credit history? 'Those projects are difficult for a
bank to finance, even if the owner has collateral,' says Mr. Pollard,
'because there is no record of cash flow.' Positive cash flow is critical
to new businesses because they usually lack the cash reserves needed
to weather a dry spell. Entrepreneurs looking for commercial loans
under $30,000 might also have difficulty getting traditional financing
as smaller loans are expensive to administer. If
a business owner does not qualify for a commercial loan, they can
consider a home equity line of credit or home equity loan. Leasing
is another option for equipment purchases such as a computer, copy
machine or a company vehicle. Leasing programs are offered through
some banks, such as Hudson River Bank & Trust, as well as independent
financing companies.
Mr. Pollard
described Hudson River Bank & Trust's relationship with the
Columbia Hudson Partnership as cooperative. Since the MicroLoan
program will make loans for as little as $2,000, he often refers
businesses to David Pearce, a Small Business Counselor at the Partnership.
'The MicroLoan program fills a void in communities by lending to
businesses that only need a small amount of capital to get started,
or to reach the next level. On the other hand, the SBA limits MicroLoans
to $35,000, so the Partnership also refers clients to traditional
lenders throughout the county. It's a win-win situation,' says Mr.
Pollard.
 Other
topics in the MicroBusiness Seminar Series include 'Marketing 101',
'Staying within the Lines' and 'How to Write a Business Plan'. The
eighth and final class consists of a presentation of their product,
service or business plan by each participant.
The cost for
the course is $150.00, and scholarship money is available. The course
fee is refunded to the participant upon completion of the course
in the form of either a one-year membership in the Columbia County
Chamber of Commerce, or a gift certificate to Kd OfficeWorks.
The MicroBusiness
program is geared to Columbia County businesses with five or fewer
employees, including the owner. Applications are now being accepted
for session 15, scheduled to begin on June 4, 2002. To receive an
application, please call Martha Lane at the Columbia Hudson Partnership
at 518-828-4718.
Contact: Martha
Lane
Columbia Hudson Partnership 518-828-4718
444 Warren Street
Hudson, NY 12534 |
