Consumer credit growth is slowing down, but owners are increasingly bucking the trend with small business loans.
The Wall Street Journal recently reported total outstanding consumer credit as measured by the Federal Reserve, excluding loans secured by real estate, rose 5 percent at a seasonally adjusted annual rate during August – the slowest rate of increase since the previous November.
Most growth in consumer credit has been coming from the student loan sector, particularly federal government lending, according to The Wall Street Journal. However, financing for auto purchases was also a driver of growth.
Meanwhile, small business borrowing has been seeing considerable gains in recent months. The Thomson Reuters/PayNet Small Business Lending Index rose to its highest level in more than seven years during July, rising to 128.5 from 120 in June.
However, finding the right loan may not be so simple for some small business owners. Even as the economy continues to recover from recession, many financial institutions have strict qualifying requirements in place that can make obtaining a business loan much more difficult. Fortunately, there are numerous options available to small business owners who find themselves in need of extra funding.
Freedom and flexibility through small business loans
National Funding is dedicated to flexible loan options that can be tailored to suit different small businesses, whether you’re looking to expand, consolidate debt, pay taxes or anything in between. As opposed to a one-size-fits-all approach, small business owners can feel confident knowing they have a wealth of options to choose from.
For instance, small business working capital loans come with simple paperwork and absolutely no requirement for owners to pledge personal assets. These loans can be ideal for business owners with poor credit scores, and also come with renewable options.
Meanwhile, a merchant cash advance may be more appropriate for some small business owners. This option can be especially useful when it comes to repayment.
With a cash advance for business, owners can receive their funding in as few as 24 hours with no collateral or upfront costs necessary. Instead of repaying the loan in a standard fashion, merchants will receive cash in exchange for a fixed dollar amount of future credit card sales. That way, the advance is only repaid as you receive payment from consumers.
Data shows more small business owners are making use of borrowing opportunities, but it remains essential to secure loans that fit your specific needs.