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.

Featured


  • Facebook live for small businesses

    How To Use Facebook Live For Small Businesses

    As a business, it's important to stay current on trends your customers engage in. A recent social media trend is Facebook Live, a tool that allows users to live stream anything they wish directly to the social media platform. Consumers love to use Facebook Live to share snippets of events they wish to show their… […]

  • Essential business development tactics

    3 Effective Business Development Tactics for Small Businesses

    Ultimately, every small business wants to grow and develop. However, owners need to pick spots and choose to develop their operations in a way that is sustainable and beneficial in the long run. Growing simply to expand the business's footprint doesn't always make sense from a financial or operational standpoint. How can your business increase… […]

  • Entrepreneurial books to own

    7 Books All Entrepreneurs Should Have On Their Bookshelves

    Becoming an entrepreneur can be a fun, exhilarating adventure. But sometimes, the enormity of the challenge of starting and leading a successful business can be overwhelming. In those moments, it's important to have inspiration to propel you forward, or advice to give you clarity to your situation. Luckily, some of the best business advice and… […]

  • Celebrate National Small Business Week during the first week of May

    Celebrate National Small Business Week with Events in May

    The first week of May marks the country's annual celebration of small businesses. National Small Business Week will be recognized through Saturday, May 6, with plenty of opportunities for small business owners to participate in events, both online and in their communities. National Small Business Week was designed to highlight the significance small businesses have… […]