In The News

 

11 13 2014

11 13 2014

Christmas Season Can Bring Surprises for Small Business

If you own a small business, there’s a decent chance some of the surprises coming your way this Christmas won’t be courtesy of a fat guy in a red suit, as new data from National Funding reveals.

The data is made up of responses from a survey of 506 small business owners from across America who were contacted at one of two points in October. It shows 4.3% of small businesses expect to borrow money at some point during the shopping season.

National Funding CEO Dave Gilbert believes that number is low. “The truth is 4.3% is probably under-reported because the majority of loans that arise during the holiday season are last minute. Whether or not a small business believes they will need to borrow money, owners should always be planning ahead and anticipate the need for financing.”

Should that need for additional funding arise, 63% of small business owners do not expect to get it from a bank.

That is good news for alternative lenders, Mr. Gilbert believes. Those lenders provide products better suited to small businesses at this time of year anyway. “These days, they have more alternative lending options,” Mr. Gilbert said. “Most times, small to medium size businesses don’t need long term financing, especially during the holiday season. Alternative lending options offer the flexibility and quick turnaround needed for owners to keep their businesses running smoothly.”

Many small businesses generate a large share of their revenue in the fourth quarter. That planning Mr. Gilbert refers to should take place earlier in the year when businesses have some time to consider if they want to make an investment in additional equipment, staff, advertising or product that could pay off in a few months.

There is plenty at stake for both the businesses and lenders. The more than 28 million small businesses in the United States expect to generate just under $1 trillion in sales.

A surprising number of those retailers will not be making any sales online, a practice which will cost them sales. More than half of the respondents said they are not using the internet for sales or service. “Despite the popularity of ‘online-only’ or an online component, many mom-and-pop shops prefer the in-store interaction with their customers,” Mr. Gilbert explained.

Those retailers prefer person-to-person dealings at the counter, and that preference extends to dealing with lenders. While most borrowers will at least research potential lending partners online, the majority prefer to seal the deal in person. That belief has factored into National Funding’s staffing philosophy. “At National Funding, we have a dedicated sales team that personalizes the customer experience, so they are comfortable, fully informed and equipped to make the best decisions for their business,” Mr. Gilbert said.

One final nugget shows the domestic economy is recovering nicely from the recession. A strong majority of 88 percent of respondents have a neutral to positive outlook this season.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan.  What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number.  We will also ask for your name, address, date of birth, and other information that will allow us to identify you.  We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.