Finance & Lending

National Funding Card National Funding Card

Have Your National Funding Card? Get Started.

04 15 2013

04 15 2013

More Small Business Loans Borrowed from Alternative Lenders

According to a recent Forbes magazine article, small business owners take out about $300 billion in small business loans from banks each year, yet banks continue to underserve them. The article reports that on average, big bankers prefer to dole out millions to larger companies, while often committing substantially less funds to small businesses because they see smaller organizations as risky. Banks that lend typically rely on the credit score data of the business owners as a shortcut for due diligence, and small business owners are often more likely to have lower credit scores and incur higher interest rates.

A New York Times blog post recently acknowledged that sometimes banks blindly refuse to lend to small business owners and entrepreneurs. Since they are not generating as much income as bigger organizations, small business owners often are more likely to have credit card debt, lower credit scores, smaller streams of income, and other red flags that tend to cause banks to shy away from lending.

While big banks seek out already established companies to use their lending services, many small business owners find they can turn instead to alternative lenders. CNBC News reported that the majority of small businesses with under $10 million in annual profits can secure their merchant cash advance and loans through smaller lenders. Each alternative lender typically relies on its own system to comprehensively collect data and evaluate potential borrowers to get a fuller picture of the business owner. More recently, alternative lenders have begun using technology to inform the decision-making process. Some are using online databases and social media rankings to assess small business potential.

Small business owners who are ready to secure funding with a small business loan or merchant cash advance may want to consider working with National Funding – an industry leader that provides financing solutions to small businesses.


  • Gain Social Media Followers

    7 Ways To Attract More Social Media Followers For Small Businesses

    Social media platforms like Twitter, Facebook, YouTube, and LinkedIn are wonderful ways to connect with your customers, answer their questions and alert them when you have a new product or a sale. However, the benefits of social media can only truly be realized if you have a following. Creating a social media account is only the… […]

  • Press Release

    National Funding Holiday Bowl Kickoff Luncheon

    National Funding Kickoff Luncheon Set for Dec. 27 Featuring Teams In 2017 San Diego County Credit Union Holiday Bowl SAN DIEGO (November 16, 2017) – College football fans will have the rare opportunity to mingle with players and coaches from the San Diego County Credit Union Holiday Bowl at the National Funding Kickoff Luncheon on… […]

  • Inventory loans for small businesses

    Inventory Financing – 4 Tips To Help You Get The Most From Your Loan

    Every business that sells products must have inventory. Without it, you simply won't make a profit. However, figuring out your inventory needs can be a challenge. You want to have enough so that you never need to tell a potential customer that you're out of stock - these people could wind up visiting or buying… […]

  • Prepare your landscape business for summer

    4 Ways To Prepare Your Landscaping Business For Summer

    As the winter months come to a close, home and business owners will begin to ponder their lawns and gardens. They know their landscaping is important for inspiring positive first impressions of their property. And who will they turn to for the landscaping tune-up? Your landscaping company, of course! As such, now is the time… […]