The state of commercial finance in 2013 feels a bit unfair to small business who are still uninvited to the big banks' party. According to the FDIC, banks are increasingly lending to larger companies since the slow down after '08, but smaller companies are not feeling the love. Data just released …
The State of Small Business Lending
As we head into 2013, the small business lending scene is still convoluted at best. Small to mid size businesses continue to be frustrated by the lack of access to capital from banks for those with a less than squeaky clean balance sheet - which is the majority. Community banks and alternative …
Bankers See Small Business Lending as Next Profit Center
Since previously reliable revenue streams are drying up for banks, bankers have their sites set on profiting from small business loans. Alternative lenders (including asset base lending and accounts receivable lenders among others) still have the highest approval rates for lending to small business, …
Small Businesses Fret About Access to Capital
According to a recent survey of small business owners, a plan for increasing access to capital ranks as one of the three most important factors in choosing a presidential candidate. Most of the nearly 1000 surveyed, felt that neither candidate addressed the main concerns of small business owners and …
Alternative Lenders Continue to Beat Credit Unions, Banks in Business Loan Approvals
A recent report shows that alternative commercial funding is on the rise as small businesses seek fast, flexible and competitively priced working capital solutions. Commercial finance alternatives, such as asset based lending, accounts receivable financing, purchase order funding and other types …
Comeback Trail in Business, Like Sports, Features Six Steps
Business and sports are both about winning, according to a new book on the similarities of a team and business turnaround. To turn a failure to a success, there are six stages that each has to go through but, ultimately, the leader is the key. A good leader possesses attention to detail; has …
Study: Small business lending falls
A recent report indicates that small businesses are still being cautious when it comes to investing or expanding. With economic and political uncertainty lingering, there has been a lack of optimism to spur growth.
Source: Bloomberg Business Week, August 1 2012
NEW YORK (AP) — Lending to …
Why Is It So Difficult To Lend To Small Businesses?
Regardless of the economy, small business has always been put through the paces when borrowing money. All commercial finance sources have duties to uphold and therefore risk to avoid. Whether the lender is a bank, a private investor or other, it's all about balancing risk and reward. Asset based …
Why Small Banks Aren’t Always Best for Small Business Loans
One would expect commercial finance for small business to drop when banks were able to become centralized and nationalized. According to a recent study, this is not the case. When small banks are the only game in town, they can cherry-pick among the applicants and charge higher interest rates on …
Fearing an Impasse in Congress, Industry Cuts Spending
Despite some reports of an economic recovery on the horizon, many businesses remain in “hunker down mode” waiting out the political and economic uncertainty, according to the article below. Are we poised on the precipice of an "economic cliff" as Bernanke claims? Many business owners are …
Government Report Shows Downward Trend in Small Business Lending
Despite recent monthly reports of small business lending showing an increase, an annual comparison tells a different story. According to a new government study comparing both large and small business loans in 2011 with the same 12 month period ending June 2010, smaller loans were down nearly 7% …
Small businesses say tight credit a hindrance
The latest Biz2Credit Small Business Lending Index - which provides monthly analysis of loan applications - found that business credit approvals in June by both big and small banks were up from the previous month. It's difficult to assess whether this is the start of a trend or just another bump …
Biggest U.S. Banks Curb Loans as Regional Firms Fill Gap
Small business loans by the biggest banks have dropped by nearly 5% compared to two years ago, according to Bloomberg. Regional banks and other commercial finance sources are stepping in to fill the void and could be key to jump starting an economic recovery. This decrease in big bank lending is …
Are banks cutting back on lending?
Many small businesses say they are finding it difficult, or impossible, to get a loan from a bank. Recent data supports their claim and seems to indicate that the screws are beginning to tighten again. Figures show that big bank (those with assets over $10billion) lending to small business has …
Non-Venture Funding Option Pros and Cons
Whether you're preparing to launch a startup or want to grow your business, one thing is for certain: You’re going to need money. Equity and debt financing are two different financial strategies: Taking on business debt means borrowing money for your business, whereas gaining equity entails …
Fed Shocks Small Banks With Basel Proposal, 2,000 Banks Could Disappear
A new proposal by the Feds puts our nations small and community banks on the same playing field as large banks...seems an unfair game. Will the higher capital requirements stunt our economic growth? The Basel III international bank capital standards slap a "one size fits all" tag on a banking …
Bernanke to Congress: It’s your turn to act
Fed Chairman Bernanke called on Congress to do their part to "keep the economy from rolling off a fiscal cliff." Investors and small business owners continue to be apprehensive about the seemingly elusive "recovery." If this segment remains risk averse and hunkered down, the economy will not get a …
Small Firms’ Big Customers Are Slow to Pay
In a recent survey, many small business owners reported that they are waiting longer for payment from large customers. This takes a toll as they struggle to stay afloat while they wait -- often forced to borrow at high rates to cover the gap in working capital. The repercussions can be felt …
What can Bridge financing be used for?
When the cash flow from a sale of an asset is expected after the cash outlay for the purchase of one, bridge financing can cover the gap in cash flow. It is short term, backed by real property. In this economic climate, permanent commercial finance can be difficult to find and a bridge loan can …
Small Business Administration head: Access to capital still a challenge
In a recent interview, the head of the SBA claims that the lending climate has improved since the economic meltdown in 2008, but access to credit remains a challenge for many small businesses. SBA small business administration loans have evolved over the last few years to fill the gap left when the …
Small business lending increasing as economy improves
According to recent reports and the interview below, commercial finance is on the rise. Small business owners seem to be a bit more optimistic about their companies and the economy in general and therefore willing to invest in upgrades and expansions that have been put off for the last few …
Small Business Not for the Faint of Heart
According to a recent survey of small business owners, running their company is more stressful than raising children and forces them to give up a lot of free time, exercise and other aspects of their personal lives. Despite this, small business owners remain optimistic about the national and local …
Small Businesses, Big Banks: Good Fit?
Are bigger banks willing to deal with the risk of a small business loan in tough times? According to this CNBC article, local banks are more willing to see small business through challenging times whereas big banks require much stronger financials to make a small business loan. Community banks are …
Lending standards hinder recovery
A recent survey real estate industry survey indicated that tight standards for small business lending apparently continues to be an obstacle to economic growth.Small Businesses require capital to purchase commercial RE, such as land, warehouse, suburban office and retail space to name a few. …
Bernanke says lending spigots are more open now
Bernanke said small business loans from banks, though increasing, were still 15 percent below their 2008 peak at the end of last year. Banks complain that the strict regulations make it more difficult for them to lend, but Bernanke claims he has urged regulators to take a more "balanced" approach …
Lenders Approved Fewer Small-Business Loans in April
Loans to small business dropped in April for the first time in a year. The decline in credit approvals was across the board, from big banks to small banks to credit unions. The rate held steady for alternative lenders. Both borrowers and lenders are proceeding with caution as the economy continues …
For Small Firms, the Check is Not in the Mail
Small businesses are waiting longer to get paid. Highly dependent on regular cash flow for working capital, this delay makes it difficult to count on being able to pay vendors, suppliers and their own employees. A vendor assurance service can be a critical tool in maintaining vendor and customer …
Manufacturers to banks: We need money now
In business, cash is king. The manufacturing industry has been experiencing a recent surge, but business owners are frustrated by a lack of access to cash. Despite being able to show the banks that their businesses are profitable and on an upward trend, banks are denying them the commercial …
Why Aren’t Banks Lending to Small Business? Ask Bernanke.
While there seems to be general agreement among bankers, small business owners, and policymakers that small business lending has declined substantially since before the financial crisis, there seems to be disagreement as to the culprit. Banks profit by making loans, not refusing them and most …
Small Business Credit Availability Act eases small banks’ Dodd-Frank burden
A recent survey of the Federal Reserve indicated an increased demand for business lending. In response, there seems to be a slight easing of standards by the big banks in order to remain competitive in the commercial financing arena. Small banks and non-bank lenders have entered the game in …
Slugging It Out Over Business Loans
Has increased competition by small banks and non-bank lenders forced the big banks to "lighten up" their standards? Business lending is experiencing and increased demand, according to the Federal Reserve. In response to the demand, business lending is up among larger banks. Interestingly, the …
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