Whether you are a small business owner looking to expand your company or you are an entrepreneur with the next great idea, the one thing you have in common is that you need capital in order to turn your business plan into reality. The problem for quite a few years now has been that sources for that kind of capital are limited. It’s not that there aren’t still millions upon millions of dollars being loaned. They just aren’t going to small business owners. Big banks are all about avoiding anything they view as a risk and thus have been stingy about giving resources to small businesses. Alternative lending, however, has come to the rescue for many.
Believe it or not, approval ratings for small business loans are higher with big banks than they have been in a while. That having been said, 17.6% still means that your odds are less than 1 in 5 of getting a major bank to fund your start up. And the problem isn’t just with billion dollar banks. Even smaller, localized banks aren’t giving money to small local businesses anymore, with business loan approvals dropping to just 48.7%.
Even credit unions, a notoriously good source for small business loans, are continuing to shy away from giving their capital to new businesses. Only 43.9% of small business loans are being approved now and, as with small banks, that number continues to fall from month to month. There’s really only one source that is consistently providing capital to small businesses and that is alternative lenders.
67.3% of small business loans were approved by alternative lenders in the last month of 2013. That means that rather than having less than half a chance with a small bank or credit union, and hardly any chance at all with a large bank, alternative lenders are approving more than two thirds of small business loans. And the trend is on that percentage continuing to increase.
In reality, alternative lending sources like prodsllc.com are what is allowing small businesses to continue to compete in our modern economy. Without capital, startups have no way of getting their feet under them, and the best of ideas can fall by the wayside. If you are tired of hearing no from banks and credit unions, know that there is another sector you haven’t tried yet, and these alternative lenders are saying yes to ideas like yours every day.