05 10 2013

05 10 2013

Latino Small Business Owners Have Difficulty Securing Funding

Although Latino-owned small businesses are increasing in number, many are having trouble getting approved for a small business loan. Leader of The Latino Coalition, Hector Barreto, recently told Fox Business that as many as 3 million small businesses in the United States are currently owned by Latinos. In addition, those businesses pull in an average of $500 billion in annual sales. Despite the growth of Latino-based businesses, however, many still lack access to proper funding.

Barriers to securing small business funding

Even though they are a fast-growing segment of American small business, Latino-owned enterprises routinely encounter more difficulties when securing financing. According to a Michigan State University study conducted by the school’s Julian Samora Research Institute, there are several reasons why Latino business owners lack access to financing as opposed to owners of other ethnicities. Language barriers are one of the most pressing challenges Latino business owners face, especially among the foreign born who speak English as a second language. Lack of access to education that would provide business training and experience to help them develop their company is another obstacle some Latinos face. Low-income Latinos who lack wealth may also have lower credit ratings, which presents another hurdle to obtaining approval for funding.

Research also indicates that minority business owners are sometimes perceived as being less likely to be successful due to race-related biases. Findings also showed many Latino entrepreneurs begin their business when they are young, which may lead to age discrimination and further exacerbate misconceptions.

Michigan State researchers also predicted the U.S. Latino population to triple by 2050 and constitute a full third of the domestic population; as such, the rise in Latino-owned small business is likely to increase as well. Examining alternative options available may help Latinos increase their profits and continue expanding the U.S. economy.

Proper financing critical component of long-term success

Although minorities sometimes face greater difficulties when getting their small business going, there are still options available to them. Pursuing funding or an equipment lease from an alternative lender may help Latino small business owners acquire the resources needed to grow their enterprise.

Having enough funding to finance day-to-day operations of a business is critical to a company’s success. Small business owners who are seeking financing for equipment and other tools key to long-term success can contact National Funding to apply for a small business loan or merchant cash advance.


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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, 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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By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

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.