Finance & Lending


06 24 2015

Businesses Need Fast Working Capital Lending

06 24 2015

How Faster Capital Lending Can Aid Small Business

A survey from the Federal Reserve Bank of New York found traditional lending institutions aren’t doing enough to improve access to working capital for small businesses. Although loans of $1 million or more have grown, smaller loans have not become more available despite improved economic circumstances.

Roughly 52 percent of companies reported applying for a business loan in 2013, with 30 percent of those firms doing so to expand their business operations. The numbers indicate businesses aren’t just looking to cover standard expenses, but actually make an investment in their future growth potential. And with small businesses pushing for greater market share, banks’ lending criteria for these companies should align with the goals of the overall small business sector. Not only does small business benefit, so too do average workers and the nation as a whole, as the majority of people in the U.S. are employed by small businesses.

The survey also noted businesses are having to apply for loans multiple times before being approved – roughly three times on average, spending more than 33 hours in total. Lending also continues to be more available for experienced companies compared to those businesses that haven’t been in operation as long, which puts newer businesses with high potential at risk of becoming stagnant and lacking funding.

The findings purport small businesses could benefit from streamlined lending guidelines and greater investments. Here are a few ways that faster capital lending can help promote the well-being of small business:

More immediate access to capital

The No. 1 reason small businesses stand to gain from faster lending is the immediacy and availability of funding they need. Working capital that is difficult or impossible to obtain provides no advantages to small businesses. Even if a lending process can be cut from three days to two days, the rewards are plentiful for those firms that require greater funding.

Because many small businesses operate with tight margins, every day that lending is delayed is an opportunity lost to their competitors. By knowing increased capital will be coming in, businesses can plan ahead and budget properly, making them more efficient and better able to handle economic downturns or seasonal slumps.

Removes biggest obstacle to growth

As evidenced by the survey, funding isn’t always easy to come by, especially for businesses that may not have adequate assets or collateral to offer. In addition, business owners with poor credit histories and limited upfront capital can find it even more difficult to secure the type of loans they need to improve their companies.

In many cases, the only thing restricting future expansion of the business is the lack of funding. This obstacle essentially creates an immovable barrier in front of business plans and can make it nearly impossible for small firms to afford new equipment, hire more workers or expand into new regions. This further limits employment opportunities for workers and creates unnecessary challenges for the economy as a whole.

With faster lending, businesses can make decisions more quickly and improve their operations, fueling growth.

Improves competition among businesses

Because of the large disparity of capital availability among small and large businesses, the playing field in some markets is hardly even. This puts firms with less working capital at a severe disadvantage because without the necessary loans, they will fall further behind their competitors in market share.

Additionally, when fair competition is not a part of the economic landscape, smaller firms aren’t able to flourish to the degree they may have otherwise done had they been approved for loans more quickly. Larger companies tend to have more contacts, better credit reports and larger assets, which make the lending process all the more easy for them. On the other hand, small businesses don’t necessarily have these same qualifications, and as a result, face a much harder path toward profitability.

With smaller, faster and more customized loans, small businesses are likelier to compete in any given market with larger firms, which makes products and services as a whole more efficient and economically viable.

National Funding provides the resources small businesses need to expand, including equipment financing and merchant cash advances.


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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, text-messages, 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, text-messages, 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.


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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.