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There are a few true investment bankers in the small-business arena, such as our firm US Capital Partners, Inc. Finding the right advisor to help you A smart alternative is to spend time finding an advisor who knows what he or she is doing in the alternative lending space. Loan type criteria The type of bank loans your company are categorized below from riskiest, and currently least popular with the banks, to safest and most popular for the banks to hold. Where else can you turn? This “circus” of lenders can definitely be coordinated to successfully replace the loans your bank has terminated, but it can be difficult, frustrating, and time-consuming for any small-business CEO or CFO. The following financial problems are considered most damaging to your business’s prospects of keeping its bank loans: Less accounts receivable and/or inventory assets than agreed as the “borrowing base” required for the revolving line of credit amount currently outstanding Insufficient trailing and projected cash flow to make debt service Net operating losses for the current reporting period A top-line sales decline from last year to this year Fixed-asset devaluation below the agreed loan-to-value ratio (i.e. your building is worth much less than when you got your bank loan on it) What to do if you need recapitalization If, after this brief assessment, it appears you are at moderate or great risk of having your bank loans pulled or not renewed, what should you do? The chances are the advisor for larger businesses, although competent, will not be very familiar with the particular lenders in small business or even the common loan structures in this space. You need someone who is familiar with the many lenders and who small business blog has experience negotiating and shopping loans to appropriately priced sources of capital. When looking for a recapitalization advisor or small business investment banker, it is important to look for someone with recent experience in arranging or making loans similar in size to your requirement. The world of large-business or middle-market finance is very different to the world of small-business finance as far as lenders and structure are concerned.