Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources

The small business lending atmosphere, while getting better, is still chilly today compared with before the 2008 financial crisis. Small firms applying for loans are coming up against several major obstacles. In order to be approved for critical funding, small business owners need to know how to push past these hurdles.

One of the major changes since the Great Recession is there are fewer lenders in general, and specifically fewer community bankers. This is an important challenge because community banks and credit unions typically approve about 48 percent of all small business loans submitted to them, compared with just 13 percent of those submitted to large, national banks. This means business owners should be prepared to talk to lots and lots of lenders before being accepted for funding. Perseverance is key.

Another big obstacle for small business loan seekers is that lending standards remain very tight among those banks still willing to make business loans. Increased regulation as well as a general cautiousness after the financial crisis have made lenders very wary of risk. Small business loans are one of the riskier loans for banks because the financial health of small firms is closely tied to the health of the greater economy, which has been on shaky ground for much of the past six years. There are also fees that banks must pay to originate small business loans that make the transactions less appealing. Company owners will have to be ultra-prepared with water-tight business plans and plenty of proof as to how they will pay back the loans and why their firms are worth the risk.

In today’s business market, entrepreneurs can still find loans and financing if they are willing to go the extra mile. Until credit conditions thaw even further, business owners will find networking, preparation and perseverance to be essential in securing small business loans.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources