Trends

 

10 14 2014

10 14 2014

Options Abound As Business Loan Activity Expands

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.

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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, 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.