The state of small business funding has never been worse. Regardless of what the government is reporting lending to businesses is down. Banks are holding onto their capital and making it very difficult to fund the small business owner. This is due in part to regulations imposed on them by the government. Either way the people that need it the most, small businesses, are not receiving the necessary capital that is required for them to succeed.
Small business funding gets capital into the hands of small business for many reasons. To make inventory purchases, hire more employees, expansion, new locations, make payroll, are just a few uses of the capital. The banks require too many stipulations to receive a quick $50,000 or even $10,000. Banks cannot get capital into the hands of business owners fast enough either. No bank can service a loan in less than 2 weeks…no way! Banks offer money to businesses that don’t need it. You cannot make a small business owner wait 30-60 days to get funding. The real world cannot wait that long. There are too many unexpected situations that arise that require fast capital infusions.
Business cash advances replace banks for fast capital and provide small business funding. Fast capital for any reason can be in a business owner’s hands in less than 5 days. Applications take minutes, approvals take hours, and funding takes just days. Small business funding alternative lenders know how to underwrite in ways that allow them to make lightening fast decisions in way that keeps their risk down. They can see through all the normal risk indicators to find diamonds in the rough. Time in business, business performance, industry type, daily bank balances…these are the predictors that they use to make their lending decisions. It does not involve a team of accountants to go through all their financials and tax returns. Speed is the key to successful small business funding. Lenders must get the cash into the hands of the business owners so they can continue to expand and help the economy grow.