While the economy is not slipping back into a recession, Biz2Credit’s latest Small Business Lending Index found that small business loan approval rates at small banks are declining. Much of the reason is due to the intense competition for qualified borrowers. There is still hope, and if starting a business or growing an existing business is something you are looking to do in the new year, this news should not discourage you. Here is why.
1. Still Up From Last Year
Though lending to small businesses from smaller banks declined for much of 2014, the numbers are still up from this time last year. It is still a good time to jump in and find financing to help you meet your business goals.
2. Lots of Options
There are a ton of options when it comes to finding a loan, and getting approved can be as simple as finding the right fit for your needs in some cases. If you are looking for gas station financing or restaurant financing, you may just need a small business line of credit to help bridge cash gaps rather than a full on commercial loan. Applying for the wrong kind of financing is a sure way to not get approved. Find a lender that will help you determine what your needs are and work with you to find the financing you actually need.
3. Not All Businesses, or Borrowers, Are Created Equal
Truthfully, there are all sorts of special lending programs based on the business or the borrower that can make all the difference in getting approved. There are loans for women, commercial business loans for minorities, and even dental practice loans. There are loans geared specifically toward physician financing, and products that are better suited for restaurant financing. Sometimes a one size fits all commercial loan is not the only option.
Biz2Credit has a network of 1,300 lenders that offer financing products of all types. We can help you find the lenders and the products that best fit your needs, increasing your chances for approval. Visit Biz2Credit today to get started.