Channel Islands, CA (PRWEB) August 03, 2014
-- In recent years, studies have shown that banks have the highest rate of business loan denials than any other funding source. During a time when business funding is critical, many owners find themselves helpless after being denied the merchant cash advances or business loans needed to keep their businesses open or growing. They are literally hoping and waiting for their next lucky break unsure of what to expect next.
James Gipson learned this hard lesson through trial and error over a span of 25 years of being an entrepreneur, business owner and an investor. Creator of USSmallBizLoans.com, he is now informing other business owners of alternative lending resources through his free e-book, “12 Insider Secrets To Business Loans: What Your Lender Is Not Telling You!”
For years, banks have been the primary source of capital for small businesses, but since the Great Recession, the allocated funds earmarked for existing small businesses has dried up. As of 2008, owners are finding it more difficult to get the capital they need to run and grow their businesses. “What has magnified the problem is that banks have not only shortened the money supply by holding more funds in reserves and circulating less, but they have tightened the lending guidelines allowing fewer businesses to get funded,” says James Gipson, Expert Author and Business Loan Adviser.
Recently, entrepreneurs have pooled their financial resources and connections to form alternative private lending firms to meet the demand of small businesses across the U.S., when the banks and credit unions have failed to do so.
Since starting USSmallBizLoans.com, business owners and entrepreneurs have been educated on the differences between bank and private funding. “The more people are informed, the better decisions they can make for themselves.” As he points out, “A borrower shouldn’t judge a loan just based on the amount, the term or the interest rate alone. The borrower must also consider the fast availability of funds,” says Gipson. “A bank loan requires a ton of paperwork, personal credit risk, and can take 3-6 months to close, while private funding is less restrictive, usually has only a one page loan application, offers a no personal guarantee merchant cash advance, and can close in as little as 3 to 5 days,” he proclaims.
He warns that many small business people are not taking into consideration the velocity of money as a major factor. The speed in which you can turn $1 into $15, $20 or more in the shortest time is why the availability of funds is the most critical component.
Gipson uses this example: “Let’s say, you are the proud owner of a pizza delivery service who needs to increase production to meet the peak demand of Super Bowl Sunday. Well, maybe you were too busy running your business to stop to go to the bank, sit down and fill out tons of loan paperwork or you just didn’t get around to it. You are only weeks away from your peak season, but you need an extra $10,000 to stock up the inventory.” He asks, “What do you do then? If you go to the bank you will either get denied or even if you get approved the bank can’t fund you fast enough!” He suggests your best solution is an alternative private lending source. This type of scenario is a realistic illustration of just about any business or industry these days.
The amount of competition for a larger piece of the market share is ever increasing. A small business must have the additional capital to grow in order to compete. He points out that business owners just need to be aware of their options before applying for a business loan, merchant cash advance or a business line of credit.
USSmallBizLoans.com is a one-stop small business resource that offers small business owners in any industry across the U.S. and Canada, the opportunity to obtain fast working capital needed to sustain and to expand their businesses by lending easy to qualify funds to purchase equipment, supplies, and inventory or for any business purpose.
For more information, or to obtain James Gipson’s free e-book, “12 Insider Secrets to Business Loans,” please visit http://www.USSmallBizLoans.com.