For the past ten years, banks have been exiting the small business loan market. This has seen a decline in small business credit, forcing small companies to seek alternative financing options to acquire capital for their business.
Boston, MA (PRWEB) October 22, 2014
In the United States, small business lending is recovering much more slowly than other types of business lending. Banks held $585 million in the first quarter of 2014, a figure that has only increased 1% since September 2013. It is, however, 18% lower than what the banks held in 2008, which was an estimated $117 billion.
Small business lending has remained extremely low in nearly a third of all U.S counties. As of March 21st this year, loans to all businesses amounted to $2.48 trillion. Although this is a 9% increase from 2008, it is dwarfed by pre-recession levels. However, since the end of the financial crisis, leases and loans grew at the highest quarterly rate in the second quarter - a clear indication that the economy is improving. However, even though banks have loosened their lending standards for medium and large companies, they still maintain tight lending standards for small businesses.
Vernon Tirey, CEO and Founder of LeaseQ, says, “For the past ten years, banks have been exiting the small business loan market. This has seen a decline in small business credit, forcing small companies to seek alternative financing options to acquire capital for their business. This has been extremely beneficial for our business here at LeaseQ however.”
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The reduction in the number of small banks who are likely to approve small business loans is largely caused by the 15-year long consolidation of the banking industry. In addition, bankers have moved toward bigger and more profitable loans due to increased competition in the banking sector. Small businesses looking to borrow money in order to expand their businesses or add new equipment are therefore finding it increasingly difficult to access traditional bank financing.
LeaseQ Offers Alternative Financing Options For Small Businesses
Given the tight lending standards set by traditional financing, many small businesses may find that alternative financing is the best fit for their business. LeaseQ offers three alternative financing options for businesses that are looking to acquire unusual equipment, have distressed credit or are startups.
The first type of financing option is the revenue loan. This is a financing option that caters to businesses with poor credit ratings but generate a monthly revenue. The second finance option is the unsecured financing. This is suitable for businesses that have a good credit score. Interested candidates can enjoy introductory rates as low as 0%. The third type of financing is retirement funding. This is a good option for businesses that have a minimum of $30, 000 in a 401k retirement account.
Business owners can choose any of the three options and get approval within 10 days. The process of applying for alternative financing is very easy and straightforward. New and established business owners can qualify for any of the three financing options.
LeaseQ is an online market place for finance companies, equipment dealers and businesses seeking financing. Based in Woburn MA, their mission is to make it more cost effective, faster and easier to sell and finance equipment. Visit them at https://www.leaseq.com