Credit Crunch Hits Small Businesses

We see the headlines over and over again. Small businesses are finding it harder than ever to get bank loans. In a Federal Reserve survey released earlier this month, more than half of the banks polled in April said they tightened their lending criteria for small firms in the last three months. That's up from January, when 30 percent of those same bankers reported stricter standards than the previous three months. The Small Business Administration's most popular small-business loan is down 19 percent nationally in volume from the same time a year ago, according to agency data. A company looking for money to facilitate their growth will naturally turn to their bankers for a loan and bankers are our number one source of referrals. But, what business person do you know that sells their goods and services on credit to other businesses and has been denied funds by their bank? If you are a banker or broker and you know someone who has a need to turn their receivables into cash, contact us today.