A CALL TO ARMS - National Association of Professional Allstate ...

• Consultative credit decisions:You’ll want a lender that considers andunderstands every facet of your agency,including all of your agency’s assets andpotential – one that looks that the “bigpicture.” A lender with an in-depth unfinancetipsTiming is EverythingBY TOM SANDERSannounced recruitment campaigns fornew agency owners in more than halfa dozen states since April, according toan article by Daniel Hays posted onlineat www.property-casualty.com/News.Based on the company’s aggressive hiringefforts, it is clear that a major expansionplan is underway.What about you? Have you beenthinking about an Allstate expansionplan of your own? If so, who you obtain aloan from can be just as important as thetype of loan you get. Consider these issueswhen you’re assessing different Allstatelending sources:• Accessibility: While you may beable to find a loan on a toll-free hotline,through a Web site, or with a businesscredit card, but the convenience couldcost you later. And who will you talk toonce the ink is dry and a problem or additionalneed comes up?Even just thinking about buying anAllstate agency or refinancing yourown Allstate agency at this time mayseem like a crazy notion. However, financialexperts are suggesting this maybe a terrific time.“Despite the economy, if you approachthe market correctly, it truly is an incredibletime to buy a business because it is abuyer’s market right now,” according toRichard Parker, author of How To Buy AGood Business At A Great Price. “Havingup-to-date knowledge is the key to successfor today’s business buyer.”A Silver Lining?There are “signs of progress on theroad to economic recovery,” according toBusiness Week’s Business Outlook ( June22, 2009). The Index of Small BusinessOptimism was up by 2.1 points in Mayto 88.9, “still below its historical averageof 100, but headed in the right direction,”according to the NFIB Small BusinessEconomic Trends report ( June 2009).This can be an excellent time to buyan agency or refinance your own Allstateagency, especially when you find adependable source of financing you cantrust, which is no small task in today’smarket. The Small Business Administration’s7(a) loan program has slowedconsiderably. Large banks are reluctant,or are not in a position to lend moneyfor small business purchases. And overallconfidence in the market is still shaky.So where’s the silver lining? It is with thelenders that focus on Allstate agencies.The prospects for Allstate agents lookextremely good. For starters, Allstate has• Wide range of capabilities: Yourfinancing needs may be simple and relativelyeasy to satisfy now, but in the futureyou could need more sophisticatedfinancing services for future challengesor opportunities.• Sizeable resources: A successfulAllstate agency can grow more rapidlythan you expect, and the need for additionalfinancing support will expandwith the business. You can’t afford tobe limited by your lender’s size, lendinglimitations or lack of knowledge aboutyour business.46 — Exclusivefocus Fall 2009