September 19, 2014

Small Business Credit: An Update

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Money. It’s the key to your business’s survival, of course. And when cash flow isn’t sufficient any small business suffers. One alternative for many years has been small business credit, but as you’ve probably read in the mainstream press and just about everywhere these days, it can be harder to come by then ever. We’ve put a roundup together on the state of small business credit…and information on alternatives that can help your business thrive and survive even without it.

Trends

Could small business lending be returning? A concern raised by many entrepreneurs and economists has been small business lending particularly in terms of its effects on the economy and joblessness. But is small biz lending about to come back online and how much difference will that make in the long run? WSJ

But are loans really the problem? The place we’ve heard most about small business lending it seems has been from government officials who insist that lending is critical to stimulating small business and creating jobs. Not too surprising to us here at Small Business Trends where we’ve raised this question before, even the mainstream news media is beginning to realize this may not be the problem. You’re the Boss

Survey says…demand still low. A polling recently of businesses in the New York region suggests that loans remain difficult to come by but that appetite for them in the small business community remains relatively low. A telling result also mentioned was that many small businesses seem to prefer waiting for better economic conditions before borrowing more money. WSJ

Tips

An important tip when times are tough. With credit tight and cash flow stretched, it’s important to get paid what you are owed. The economy may be hard on customers and clients too causing some to wait as long as possible to pay, but it’s important for you to collect even when times are tough. So take the proper steps.  Tweak Your Biz

Moving beyond banks. While more traditional lending institutions may not be a good fit in the current economy or simply because the loan you need does not meet their basic parameters, other options have emerged that offer solutions beyond the lending norm. Welcome to the world of social lending. Open Forum

Strategy

Some businesses turn to alternative forms of funding. With credit hard to come by and small businesses reluctant to borrow, many are turning to alternative forms of funding and one such source is the merchant cash advance. Providers of this service offering cash noe in exchange for a portion of future debit/credit card sales say business for them is booming. WSJ

A story of crowdsourcing: “Old school-style.” Blogger Peter Ireland relates the story of James Ling, an old-style entrepreneur whose successes in funding his financial empire from humble beginnings can still be an inspiration to small business owners today. Do you really need a bank loan to start or expand your business? The Seed & Startup Capital Blog

Policy

Feds push more loan options. In what Washington signals as a new effort to promote job growth, the Small Business Administration is again pushing loan options for small businesses. This regional news report explains more about the program and about the kinds of businesses that may qualify. WIVB.com

Big funding coming through state initiatives. The SBA push is not the only effort on the way to boost lending in the small business sector. This article from Florida trumpets $97 million from the U.S. Treasury Department funneled through the state’s State Small Business Credit Initiative. But an expert says it isn’t what small businesses really need. Bradenton.com

Total of $360.9 million will leverage lending. The total funding package for small businesses announced Tuesday includes money for 11 states and the District of Columbia, part of the Small Business Jobs Act of 2010 which earmarked $1.5 million for investment in hopes of leveraging $15 billion in private funds. Would this money help your small business? The Washington Post

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