How to Secure Business Lending When the Bank Says No
During the credit crunch banks got mean with their money and started to refuse to lend to businesses, even those with a excellent financial track record. For those firms who are eligible for business lending the barrier to entry also climbed considerably higher.
Meaning more paperwork, form filling, criteria checks and generally and level of interference that no business owner really needs.
Thus for many business owners, after many years of boom time and easy lending the banks finally closed their wallets and sucked away all the available capital that might previously have been available to small businesses.
Where Can I find Lending for Business Besides the Bank
The good news is that there are now firms backed by hedge funds, entrepreneurs and marketeers who recognized long ago that pandering to the bank is a bad way to do business and gain the capital you need.
Banks are slow and arranging credit overdrafts, loans, paper chasing and cutting through red tape and general incompetence takes an age.
Then after weighing you down with bureaucracy they add their sky high finance charges, no wonder the average small business is bent to financial breaking point while the bosses at the bank laugh, smile and collect their big bonuses just like before.
Peer to Peer Business Lending
These are regulated financial firms that have realized long ago that the established banks totally suck and they specialize in providing liquidity and funding to stable businesses and services to investors that the bank can’t match. The time it takes to gain access to much needed financial capital is vastly reduced and the paper trail and red tape is typically slashed to a fraction of what it otherwise would be.
What you need to typically qualify are a good set of accounts showing healthy trade and a decent credit rating and normally you are all set. There are several peer to peer lenders for businesses, one such lender is Funding Circle and there are many more. They are an excellent choice of extra business capital for when the fat cats at the bank say no.