Lending in the traditional setting is still quite limited for the small business owner. The criteria for a business loan is tight and inflexible and many small business owners often feel the sense of ‘rejection’ as they are declined yet again another business loan. The financial crisis is still messy, and the total value of small business loans was about $652 billion in 2010, down from $712 billion in 2008, a huge decline.
The banks are tough on the requirements for business loan options and demand a great amount of paperwork and very meticulous about lending. Bad Credit plays a part, as does personal debt however having a bad credit should not keep you from being funded.
Mike Lubansky, a senior financial analyst at Sageworks recommends on Fox Business that Small Business owners searching for business loans should;
1) Locate a suitable bank that caters to their specific needs
2) Form and maintain a solid relationship with the bank
3) Comprehend the risk involved in the loan
4) Be prepared and knowledgeable about your business
5) Have alternative bank options
The financial crisis continues and small business owners are still struggling to obtain business loans for their business. Bad Credit Business Loans are available with much higher interest rates but this is not always a solution for small business owners who need immediate working capital. Alternative Business Financing is another option. The Business Cash Advance or better known as the Merchant Cash Advance is a very viable option for small business owners. The Merchant Cash Advance is a provision of cash advanced by The Merchant Cash Advance provider in exchange for the merchant’s future credit card sales. It is a easy and user-friendly way to obtain much needed working capital for a small to medium-sized business.