A blog post at BusinessWeek noted the following statistics found in a Gallup poll:
30% of the 600 small business owners surveyed said they thought credit would be harder to get in the coming year (2014), compared to 37% asked at the same time a year ago
Though this notes a marked improvement in small business owner confidence they can access the lending they need, the exact same statistic was 11% in the third quarter of 2007, and 24% in the third quarter of 2008
The Reality of Business Financing? It’s Still Tough
Gene Marks recently highlighted some information, in a post at the New York Times:
- The Fed currently keeps a closer check on banks, who must keep lending standards tighter than before
- Banks have consolidated, and at the same time have decided not to pursue the small business sector as much as in the past
- Lending to small businesses, for banks, has become less profitable over time, so they’re naturally looking for higher margin companies to lend to
A few additional challenges facing small business lenders:
- It’s getting harder to value how risky lending to a business is. For example, companies have fewer physical assets in the form of inventory, equipment, and real estate. Now, businesses are shifting towards brands and relationships as assets. How can bankers value those?
- More lending gets secured by collateral. Compared to pre-recession levels, the 2013 Survey of Small Business Finances, conducted by the Federal Reserve, found that 76% of the total value of loans between $100,000 and $1 million was secured by collateral. That number compares to 80% this year.
But, It’s Not Hard At All to Get Financing at Reliant Funding
As long as your business is financially healthy, it’s easy to qualify for a small business loan at Reliant Funding. All you have to do is meet the following criteria:
- Be in business for at least 12 months
- Generate at least $10,000 per month in revenues
- Not have any open bankruptcies (prior bankruptcies are most often okay)
And, our loans are very flexible and work for small businesses because:
- Most do not require collateral
- No up-front fees are charged
- You do just one page of paperwork
- You can get up to $500,000 per location
- Approval can happen as quickly as one day, while access to funding can be given in as little as three days
- There is no restriction on how you use your money
If you’re interested in learning more about our small business loans, click here.