Our Friends at Forbes Say: "Get It While You Can"
Banks remain as reluctant as ever to finance small businesses, even though demand for capital is rising. The good news: alternative commercial lenders are filling the lending gap. Companies like US Capital Partners, LLC can help your small business secure intelligently structured and affordable financing when the big banks say no.
Credit Crunch, Part Two?
According to the June 2011 Pepperdine Private Capital Markets Project, business owners are enthusiastic about growing, but lack resources. Banks denied approximately 60% of loan applications over the last six months.
The latest data from the Federal Reserve in the Fall 2011 Senior Loan Officer Opinion Survey on Bank Lending Practices show that banks are tightening their standards for loans to companies with less than $50 million in annual revenue, even as loan demand is ticking up.
The Good News
According to Forbes, plenty of small banks are still willing to lend. Asset-based lenders (those that focus on collateral risk ) are providing financing, too. But all that could change fast if the European debt crisis worsens (and spreads) and the U.S. economy continues to limp along. Forbes's advice to capital-hungry entrepreneurs: "Get it while it's lukewarm".
Earlier this year, the Commercial Finance Association reported in its Annual Asset-Based Lending and Factoring Survey Highlights that total credit line commitments for reporting asset-based lenders were $180.7 billion at the end of last year. Asset-based lending (ABL) continues to be a real fundamental financing solution.
Securing the Financing You Need
US Capital Partners is a private investment bank focused exclusively on small businesses. The ABL market, especially for small businesses, is now extremely fragmented. Optimal small-business financing will usually require several different ABL lenders. Finding the right lenders for your business and coordinating between them to engineer an optimal financing solution can be highly challenging.
US Capital Partners, LLC has in-depth specialist knowledge and experience in this fragmented ABL market. This allows US Capital Partners to engineer timely, affordable, and intelligently structured financing for your company.