Trends

 

01 13 2014

01 13 2014

Small Businesses Are Borrowing More

Small business borrowing in November hit new highs, increasing year over year, according to a recent joint PayNet and Reuters report.

“It’s another sign of continued expansion,” Bill Phelan, founder of PayNet, said to Reuters. Small businesses “are seeing more demand for goods and services, and that’s all good for GDP.”

Businesses are borrowing more for expansion and for equipment financing. It is possible that hiring will also boost as companies grow.

The Thomson Reuters/PayNet Small Business Lending Index has often predicted market behavior up to two quarters in advance, and this report suggests growth and revenues. In other words, the market is optimistic. Reuters reported Ben Bernanke, outgoing U.S. Fed Chairman, has already said that the Fed would begin reducing their stimulus of the economy in January, and it might even phase out the cash injection into the economy by the end of 2014. That means that the agency has confidence that the economy is going to enter a growth period to sustain itself outside of fiscal intervention. Companies are capitalizing on this now, while interest rates are low.

Additionally, The Thomson Reuters/PayNet Small Business Delinquency Index indicates that small businesses have become willing to take on more risk. Delinquencies have risen slightly from what had been record lows. Delinquencies of 31 to 180 days have risen to 1.45 percent of all loans, up from 1.44 in October.

However, the Credit Union Times has recently suggested that it can be hard for small businesses to get loans from banks. The loaning industry started to reject many more applications after the recession, and it is still rejecting a large number today.

With all of this confidence and willingness to take on risk, it may be time to seek a business cash advance. A new way to receive money is through alternative business loans. For example, if a bank won’t lend out money, an alternative lender like National Funding may offer loans up to 150,000 dollars, and the money can be directly deposited into your account within 24 hours. The application is simple to follow, available online, and without obligation. There are a variety of loan repayment options.

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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.