Nearly half of United States small businesses have applied for some form of financing in recent years but it’s the smallest of firms (those with fewer than five employees) are nearly six times as likely to be rejected for a loan than mid-size firms (50-499 employees).
The report explores the financing efforts of small businesses between 2012 and 2015. Banks, naturally, are usually the first destination when seeking credit but the CFIB’s report reveals how companies struggle to fill in the gaps after being denied for a bank loan.
Alternative finance – online lenders – is a solution to the lack of bank financing but according to the CFIB, only 0.1 percent of the small businesses surveyed said they had used financing tools like crowdfunding to finance their business (it is unclear whether the research includes marketplace lending sites and alternative finance players under the term “crowdfunding”). Instead, nearly a third (30 percent) said they use credit cards to fill in their financing gaps.
Read the report here – http://www.cfib-fcei.ca/cfib-documents/rr3412.pdf
There are a lot of reasons why the banks are turning down so many small businesses. Among others….
- Your business is too new
- Your loan request is too small
- Your loan request is for working capital – not a fixed asset
- Your personal credit score is weak
- Your business hasn’t been profitable long enough
And the main reason the banks turn down small business loan requests? They can’t make money on a small loan.
Alternative lenders, like Zion Finance - Lend Up, are filling the gap left by the banks. Most online lenders only require you to be in business 6 months and can provide loans as small as $3,000 to $20 million. We also lend money for any business purpose – new employees, marketing, or just getting caught up on bills. Most online lenders will check your personal credit score but it doesn’t disqualify you if it’s weak.
Apply for a business loan with Zion Finance - Lend Up below.
Do you need a business loan? Apply for a business loan online with us. We can help you with a genuine loan to start a business or even to expand your existing business. We also lend personal loans, auto loans, truck loan, equipment loans, debt consolidation loans, home loans, mortgage loans, agricultural loans, small business loan and commercial business loans. Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsecured loans. Even without a collateral, we can still provide you a good loan.
To apply contact our e-mail: zionloanfirm.ltd@aol.com
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To get more information, Email: zionloanfirm.ltd@aol.com
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