It"s Easier to Get Small Business Loans, But Who"s Doing The Lending?
According to a recent article in USA Today, only 4% of small business owners say their credit needs weren't met over the past month, and the article suggests that banks are becoming a lot more relaxed in their underwriting, and consequently, approving more applications.
Does this mean it is now easy to get a bank loan? NOT SO FAST!! Using the numbers shown in the article, the portion of small business loans approved by banks "increased" to 17.
6% in December of 2013.
This statistic, combined with the 4% of small business owners who say they aren't getting the credit they need, doesn't exactly add up, does it? So the question is, where are these small business owners acquiring capital? The answer: ALTERNATIVE LENDING SOURCES! The alternative lending/merchant cash advance industry enjoyed a record year in 2013, and every indication suggests that this trend will only continue to grow in 2014.
After all, 82% of small business owners STILL, even in these improving economic times, get turned down for financing from traditional banks.
The industry is now evolving to the point where, in some cases, in addition to making the loan process much easier to borrowers than the banks, programs are now becoming available that are providing payback rates comparable to those of the banks.
The scariest part of this is that there are many business owners out there who are not even aware that these programs exist.
They go into their local banks, expecting the very institutions they entrust with all of their money to help them in a time of need, only to be quickly turned down.
That is what disturbs me the most.
The bank is basically telling them to "trust us with your money, but we won't trust you with ours"! For this reason, I have made it a personal mission of mine to seek out these businesses and not only help them get the capital they need to grow their businesses, but to provide marketing tools and insights to ensure their business prospers for many years to come.
Small businesses are slowly recovering from our "Great Recession", and a large reason for that is that they are able to receive capital from alternative lenders that were not available just a few short years ago, and we will continue to serve small businesses for as long as they need us, and from the looks of things, that will be for quite a while!
Does this mean it is now easy to get a bank loan? NOT SO FAST!! Using the numbers shown in the article, the portion of small business loans approved by banks "increased" to 17.
6% in December of 2013.
This statistic, combined with the 4% of small business owners who say they aren't getting the credit they need, doesn't exactly add up, does it? So the question is, where are these small business owners acquiring capital? The answer: ALTERNATIVE LENDING SOURCES! The alternative lending/merchant cash advance industry enjoyed a record year in 2013, and every indication suggests that this trend will only continue to grow in 2014.
After all, 82% of small business owners STILL, even in these improving economic times, get turned down for financing from traditional banks.
The industry is now evolving to the point where, in some cases, in addition to making the loan process much easier to borrowers than the banks, programs are now becoming available that are providing payback rates comparable to those of the banks.
The scariest part of this is that there are many business owners out there who are not even aware that these programs exist.
They go into their local banks, expecting the very institutions they entrust with all of their money to help them in a time of need, only to be quickly turned down.
That is what disturbs me the most.
The bank is basically telling them to "trust us with your money, but we won't trust you with ours"! For this reason, I have made it a personal mission of mine to seek out these businesses and not only help them get the capital they need to grow their businesses, but to provide marketing tools and insights to ensure their business prospers for many years to come.
Small businesses are slowly recovering from our "Great Recession", and a large reason for that is that they are able to receive capital from alternative lenders that were not available just a few short years ago, and we will continue to serve small businesses for as long as they need us, and from the looks of things, that will be for quite a while!
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