Traditional lenders (banks and credit unions) started scaling back on small business lending when the recession first hit in 2008. Unfortunately, although they’ve taken a few steps forward, they’re still tight-fisted. Startups and small businesses lacking the perfect loan profile are being neglected.
Forbes recently published an article about alternative lenders and how they’re filling that void in the marketplace. The article contrasts the ways that alternative lenders are actively looking to solve problems for their customers, while traditional lenders are still stuck in their old ways.
If your small business is having trouble getting a loan from a bank or credit union, you may want to look into alternative loans. In an article last month, Bloomberg Businessweek outlined some of these alternative lenders, including Kabbage,On Deck Capital, peer-to-peer lenders, and firms that specialize in merchant cash advances.
If you have questions about whether alternative lending might be a good idea for your business, give me a call at 864-836-3136 and we can look at some options.