Finance & Lending

 

01 21 2014

01 21 2014

Many Small Businesses Having Trouble Finding Financing

Most companies looking for a small business loan are looking in the wrong place. Fifty-nine percent of entrepreneurs said in a recent survey by Pepperdine University that they would look to a bank to finance their new projects. However, of those same business owners, only 27 percent found success getting their loan application approved.

Despite gains in the economy, some small businesses may still face significant barriers to bank-sponsored financing. Banks favor working with larger corporations because of their proven profitability and sound credit – lending money then becomes a low-risk move.

Many small businesses don’t have the credit available to get their loan approved. In a recent article, Forbes suggested that alternative lending is the best place for finding money to fund your business needs. Alternative loans can help establish credit and allow the borrower to improve their short-term capital, according to the source. The requirements for a loan are less stringent, and if used properly and responsibly, alternative lending can be a powerful tool in a small business arsenal.

Those seeking quick cash, between $50 to $150 thousand dollars, can have difficulty finding a bank that will service their needs without a line of credit, according to The Wall Street Journal.

“It is a substantially underserved segment of the economy,” said former American Express chairman and chief executive James Robinson III, who is investing in alternative lending companies. Banks can take weeks to review your information, and they will look at everything they can find about your company, from tax returns to revenue streams to the credit not only of the company but of the owners. Nontraditional lenders work fast, sometimes within 24 hours.

The repayment is fast, too. The new lending companies are structured to complete the repayment period in months instead of years. Often they will receive a portion of daily sales revenue out of credit card sales. These are called merchant cash advances.

Treasury Secretary Jack Lew is in favor of the new forms of lending available to small businesses. “These companies are using alternative measures to assess a business’s ability to pay back a loan,” Lew told The Wall Street Journal. “They use data like real-time shipping schedules, records held in a business’s accounting software, and even social-media traffic to determine creditworthiness.”

National funding offers alternative lending products like business equipment finance services.

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.