Article by PayDay2Go
As banks began to turn a blind eye to struggling small businesses, these entrepreneurs were forced to find new sources of funds. By the middle of the year, big banks were rejecting 90 percent of all applications for loans to small businesses. On the other hand, small banks and alternative financial lending practices began to increase their aid to growing companies.
Credit unions are a key help to entrepreneurs. These are not-for-profit institutions, and are established to promote frugality and provide credit at competitive rates. These companies are locally focused and lend at reasonable rates. While credit unions have certainly supported small business lending, they also have some flaws. The unions are becoming more aggressive in demanding deposits on their loans, and are attempting to double the current 12.5 percent interest rate cap for small business lending. As well, some credit unions have been reported to be dabbling in micro-lending at astronomical rates.
Community Development Financial Institutions have also moved in to help with small business finances. In 1994, these entities were established by the Reigle Community Development and Regulatory Improvement Act. They are focused on community development. They are certified by the Treasury department, and get funding from a cacophony of different means. The institutions are able to provide term loans to small businesses, but usually involve multiple parties, allow for flexible amortization and have long-term payouts.
Another company helping small businesses is Accounts Receivable, or AR Lenders. Also known as “factors,” an AR lender purchases the business’ accounts receivable, usually at a discount, to help them with working capital when they need it. These loans come at a high risk for the lender, so they usually include high interest rates.
Micro lenders are the fourth and final medium which helps small businesses to get the money they need. Micro lending institutions include payday loans and cash advances. These short term loans are an easy way to get hundreds of dollars without a lot of hassle. In fact, they can be achieved online with a couple of clicks. All you need to do is fill out some basic information on an application, and if you are approved, you could be on your way to the money you need to finance your business. These loans usually only last up to four weeks, so they are easy and fast. With an online payday loan, the entire transaction is electronic. The payday loan company will take care of everything, from depositing the money into your account to taking the portion of cash owed out of your next paycheck. If you are busy running a small business, you don’t have time to wait in line at a payday loan store, or fill out stacks of paperwork and fax in signatures. That’s why you need an easy-to-use and fast company that can get you the money you need without making you leave your office.
These small business-friendly payday loan outlets are great way to get hundreds of dollars in a few minutes, particularly if you are struggling with a minor financial emergency. Start applying today and get the money you need!
About the Author
PayDay2Go is an online payday loan and online cash advance company. We are dedicated to quality short term loans. We want you to trust us, and know that we only desire to give you a fast and easy loan. We will take care of all the details, so you can carry on with life while we work through your finances. Apply with us today to embark on your journey to fast cash!