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Why Banks Still Aren’t Lending to You

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 indicates that commercial finance for […]

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Alternative Ways For Small Businesses to Access Financing

Five years after the end of liberal credit policies and hyper lending came to a halt, small business owners still face rejection in the bank lending line. A slightly questionable balance sheet, a newer startup or even hypergrowth situation puts most small business squarely outside the “bankable box”. Fortunately, in that five years since the 2008 economic […]

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Why Business Owners Should be Cheering for Alternative Lenders

Bank credit criteria remains tight and lending parameters, both domestically and internationally, have become more standardized. In this tight-fisted banking climate, many small and middle market companies are unable to secure commercial finance through traditional sources, particularly if funding needs are immediate or their balance sheet is not up to  strict bank standards. Fortunately for small […]

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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 commercial lenders continues to fill […]

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5 Concerns For Small Businesses In 2013

“Uncertainty is the bane of every small business…their only rational response is to pull in their horns and slow down,” claims a professor of entrepreneurship in the article below. Most experts agree that, although there has been a slight bump in the economy and employment –  it is no recovery. Heading into 2013, small business still […]

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Five Small Business Finance Trends of 2012

According to the article below, 5 small business trends took hold in 2012. One of these, is the rise in alternative commercial finance companies.   When companies need money quickly to complete a deal, to expand or to cover short-term cash flow issues, alternative lenders have been there to filled the void left by the tightening […]

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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, but bank rates are rising.  The problem is that banks still […]

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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 leaders. Small businesses rely on commercial finance and […]

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Equipment Financing: At Year-End And Throughout The Year

When new opportunities arise, businesses want to be able to take advantage — especially those still struggling to recover from the economic downturn.  The need for additional equipment may be urgent and strategic as companies strives to move forward amid ongoing economic uncertainty.  Equipment financing and leasing can be a key strategy, allowing a business to […]

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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 clearly defined […]

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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 small businesses is falling again even as some […]

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Small Business Bankruptcies Shrink For Fourth Straight Quarter

According to a report in August by Equifax, small business bankruptcies are decreasing.  Is this attributable to deleveraging and business debt restructuring? Over the last few years with the economy in turmoil, small business owners have steadily been attempting to bring debt and assets into better alignment. This has helped many companies stay afloat until […]

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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 lending is a way to mitigate […]

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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 small business loans. With the […]

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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 pulling back now by delaying or cancelling hiring, spending […]

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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% while lending to larger companies rose by […]

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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 on what has been […]

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The 5 Big Banks That Reject the Most Small-Business Loans

If you are looking for a small business loan – you had better clean up your balance sheet! According to a recent survey, the turn-down rate varies greatly between institutions but there is one common factor: lenders want good looking financials. In this tough credit environment, there is a long line at the bank but […]

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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 attributable to their attempt […]

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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 continued to drop over the last […]

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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 injecting your own or other stakeholders’ cash into your […]

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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 badly needed jolt back to life. […]

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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 beyond just the small […]

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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 […]

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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 years.  Every situation and every […]

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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 economies and feel confident in their […]

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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 swooping in to fill the […]

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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. Although there seems to be slight improvement in access to business capital […]

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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 in monitoring banks.  Despite this, […]

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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 its tenuous “recovery.” The […]

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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 continuity. A vendor assurance program can […]

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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 financing they need to take advantage […]

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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 “qualified borrowing entities” have numerous banks bidding for their business. This […]

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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 tight credit standards seem to have eased to allow the Goliath’s […]

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Small Business No Longer Plagued By Recession Pessimism

According to a recent survey, small business pessimism is at its lowest level since the recession.   Optimism is up regarding not only their own companies, but also the economy in general.  Although still not back to pre-recession levels, this trend of positive thinking seems to be headed in the right direction.  But, does it […]

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