We’ve found some great articles across the web on business credit and lending. Check them out!
Big banks are notorious for their strict loan qualifications, making it difficult for small business owners to qualify for commercial loans. However, banks offer alternative lending options for small business owners–many banks offer business credit cards to small business owners, making credit card lending one of the most popular alternative financing options for small businesses. Read more about credit card lending here:
A familiar narrative around small business lending goes something like this: Big banks are slow to evaluate small business borrowers, and they often deem loans too risky to fund. Seeking speedier approvals and easier credit standards, business owners take on alternative financing, paying higher borrowing costs for the faster money.
Even with slight increases in small business lending, small business loan applications are undeniably denied more than accepted. CEO Jeff Stibel explains that banks are not to blame– business owners are often unprepared to apply for these loans. In this AP article Stibel explains the importance of business credit management in regards to lending and how buisness owners ought to prepare for loan applications in orer to increase their chances of approval. Read more on Jeff Stibel and small business lending here:
Thousands of stunned small business owners call Dun & Bradstreet Credibility Corp. each week after they’re turned down for a loan. Jeff Stibel, CEO of the business credit reporting company, has a message for them: Don’t blame the bank.
With strict qualifications for traditional loans, many small business find their loan applications denied. SBA lending is a great alternative to traditional commercial loans– SBA loans have longer amortization periods and can offer higher loan amounts. The SBA finances small business comprable to banks but with more reasonable application standards for emerging businesses. Read more about SBA lending in this Q&A with First State Bank Senior Vice President and Loan Officer, Steve Valiquette:
The Small Business Administration’s (SBA) lending program is a major part of U.S. business growth, and these loans can often be substituted for traditional commercial loans with some benefits to the borrower.
Small business borrowing increased in May for the the second consecutive month–a sign of a recovering economy after years of a stagnation. Reuters explains that borrowing is often an indicator of increases in employment, as businesses borrow money as they expand their employement. Further, percentages of overdue loan payments are falling, a promising indication of economic growth as businesses stabilize. Read more here:
Small U.S. businesses increased borrowing for a second month in May, pointing to growth ahead for an economy still struggling to pull free from a recession that ended four years ago. The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to small U.S.
How has small business lending changed since The Great Recession of 2009? This Small Business Trends artice explains how lending standards have tightened, why businesses are looking for alternative lending options and how the credit system is changing for small businesses. Read more here:
Bankers reported easing credit standards on small business in the second quarter of 2013, the April Federal Reserve Survey of Senior Loan Officers showed. But despite the recent lessening of lending standards, small business owners are still having a harder time getting credit now than before the Great Recession.