According to the Chicago Federal Reserve’s Beige Book, business spending increased slowly in late August and September. Many Chicago area firms reported that they were delaying hiring and capital expenditure decisions until they were more certain about the outlook for federal tax and spending policies.
When small business owners are ready to make capital improvements, there are different types of lending options available, including traditional bank loans, business lines of credit, micro loans and merchant cash advance. Each of these funding options can help spur small business growth.
The most recent Biz2Credit Small Business Lending Index found that big banks have increased their loan approval rates for entrepreneurs seeking small business loans. They approved 14.2% of funding requests in September 2012. Smaller banks, which tend to know the local market better, approved bank loans at a much higher rate: 47.6% in September. Credit unions approve more than 50% of funding requests, while alternative lenders – accounts receivable financers, merchant cash advance lenders, Community Development Financial Institutions (CDFI), micro lenders, and others – approved 64.6% of requests for capital by small business owners.
Fortunately, the worst days of the credit crunch are over, and there are many different small business lending options available to entrepreneurs. Sites like Biz2Credit can small business owners in Illinois, Indiana, and Wisconsin identify the best funding options based on their credit scores, cash flow, and accounts receivable, as well as the loan criteria of banks and non-bank lenders.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org.