It’s no secret that the amount of lending going on in this country is down as compared to pre-recession levels. The NY Times article I posted yesterday seeks to blame the lack of lending on the business owners of America. They claim that applications are down due to a general fear among business owners in regards to taking on debt. The claim further goes on to state that business owners aren’t concerned with growth right now, instead they are simply concerned with staying afloat. While it should be every business owner’s goal to stay afloat, growing and staying afloat are not mutually exclusive and any business owner who is not constantly looking to grow and expand is deciding to throw in the towel. So, we’re here to encourage you to think about growth and imagine how you can take advantage of the current state of things to grow your business instead of sustain it.
Others, like myself, believe that the lending markets are down due to excessive declines by the nation’s lending firms, banks, and credit unions. And that it is these declines that have stopped business owners from applying for credit. There is the stigma out there that no one has any money to lend and capital is simply not changing hands despite low interest rates. While this may be true of traditional banks and other lenders, it is not true for entire financial community. In fact, in the wake of the first recession, many companies sprouted up to offer loans and loan alternatives to small business owners. The recession was viewed as an opportunity to help the struggling business owners.
That’s pretty much where we are now, with hundreds of independent lenders seeking out small businesses that require financing. One of the major problems with this system is the box that each of these lenders prefers their clients fit into. The target market is so specific that it’s difficult for business owners to apply for the right kind of financing with the right company. Luckily there are many companies whose sole purpose is to match a lender and a borrower together so that they do not have to search for one another anymore. This matching process involves many steps but the most important is the industry type.
Most lenders offer funds to only a handful of specific industry types and any other applicant is declined simply for the type of business they run. While this is very common, it is also very undesirable. We’ve launching a new industry specific lending program designed to make a realistic and fair offer to any applicant no matter the industry or size of the business. This is not to say that there won’t be declines, as there will be. This is to offer everyone a fair chance at some financing regardless of their industry type. In addition, we’ve broadened our programs to create stronger offers for the industries that have historically excelled with this program.
We’re confident that we’ll be able to provide you with some form of financing or working capital regardless of your business type. The one restriction we have still yet to get passed is the time in business filter. We have not found a successful way to navigate the start up market yet, despite trying our best to offer everyone a chance. Still, we are working tirelessly to create a funding product for start ups that we hope to be ready for the launch of 2012. Check back occasionally for more updates regarding new funding programs we are rolling out.