The aftermath of Hurricane Sandy hurt small businesses in a big way. Many have shut down but the owners are waiting for loans to restart again. The reason why entrepreneurs are not open to take loan advances is their business is not in a position to earn like it used to and taking on a debt will push their organization in a doldrum. Some entrepreneurs feel that it would be difficult to pull themselves out of the slump just in-case their business fails.
Many New Jersey based small businesses are refraining from taking disaster loans. It is not that small businesses do not need the money. But, in the face of earning less money and loss of revenue, the motivation to take on loans seems to be low.
Struggling business owners shy to take on debt as they are pressed with the thought that just in-case their business fails then it will be very tough for them to make the repayments. However, there is also another fact that contradicts this thought. Sometimes lenders are found not to give loans to some businesses . It is simply because either the business is not in a position to pay back or it simply does not qualify for a loan. Small enterprises should demonstrate good credit, keep track-record of their earning and show signs of good character, in-order, to find lenders to grant loans to their organization.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to