Most small business owners are not looking for financing that provides them with massive sums of money, but instead are seeking smaller business loans to pay for necessities like leasing equipment, according to a recent FOX News report.
Although entrepreneurs do not typically seek to borrow funds that reach the multi-million dollar range, many have difficulties securing loans from big banks regardless of loan size. Fox reported that instead of seeking help from alternative lenders, some small business owners give up too easily and stop trying to land the working capital they need.
“Small business owners have to accept that banks are being overly cautious,” Larry Kline, managing director at the business consulting company CBIZ MHM, told Fox News. “If you talk to bankers they are willing to lend but the problems is because of the requirements and collateral no one makes it.”
Alternative borrowing offers options to small business owners
The good news, however, is that entrepreneurs who are serious about growing their enterprise have other options available to them through alternative lending. In addition, small business owners who do not give up when they meet obstacles are more likely to achieve the dream that spurred them into beginning their own business, which may lead to greater personal happiness, according to an American Express OPEN Small Business Monitor research report.
Although small business owners face a tough economic climate and may have a harder time getting financed by banks, entrepreneurial efforts could still be worth it. The survey, found 92 percent of business owners expressed overall satisfaction with their lives and 76 percent reported they believed their positive outlook was linked to being an entrepreneur. In addition, 54 percent said they felt optimistic about their business prospects.
President of American Express OPEN Susan Sobbott commended small businesses for their indelible positivity despite economic instability.
“We should all draw inspiration from small businesses that remain steadfast optimists,” Sobbott said. “Adversity is nothing new to the vast majority of entrepreneurs, and our research shows that while they have concerns about the near future, they have learned a great deal from recent trials and are better positioned to grow in the long term.”
Small business owners who need a loan or a merchant cash advance to grow their company can contact National Funding for their financial needs.