From AP, http://tinyurl.com/23j4r92 Are small businesses still being squeezed out of the credit markets?
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Businesses are definitely having a credit crunch that continues to impact all businesses, small, medium, and large. That said, there are creative ways to access cash if a business has decent credit (not necessarily in the 600's), proven cash flow predictability through bank statement disclosure, or decent quality customers that may be slow pay. Merchant cash advance, non-bank business loans, and accounts receivable factoring are all alternative ways to get cash infusion into a small business that is otherwise declined or border line for bank financing. There are even products that can help a business owner leverage and loan against their own 401K plan, putting the control of accessing cash in their own hands. Lets face it, banks have lined their balance sheets with cash and remain very unwilling to lend. Businesses have little choice but to look at alternatives in the current borrowing climate. Company.com's Marketplace has providers that fit each of the above lending alternatives. Check out the following services categories for more detail and to get a quote
We deal with lenders every day. Large banks will not loan to small businesses. Smaller community banks and some investors will as long as the borrower has collateral, assets and decent credit. 100% financing for start-ups do not exist. If you are asked for an up front fee for a start up and you don't have "skin in the Game" you will be ripped off. You might try going to www.business.gove/finance/financing to check out their microloan program, althought this program may have dried up. To obtain an SBA loan you must have a 675 FICO score. For all lending today a small due diligence fee will be required. You ntherefore should do your research and be carefull who you choose. Most good lenders will deduct the difference between actual cost of the due diligence and the amount that they actually used at closing.
yes small business are being squeezed out of the credit markets, i have not tried to get credit but i know some competiors who have gotten turned down it would be nice to have the ability to get a credit line in case of emergency
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