The Great Recession is now years behind us, and despite the recent boom on Wall Street, the banks are still not lending to small businesses. As Bloomberg Businesstells us, do not expect small business bank lending to rebound anytime soon. Many of the small hometown banks that specialized in these loans were bought out or knocked out of business by the recession. All that is left are the big banking conglomerates, and they still are so averse to risk that even companies with perfect credit can find it difficult to get a loan. The banks blame regulation – now that they have to hold more money in reserve and have to hire oversight and enforcement officers, they say it undermines their ability to underwrite small business loans. Even those small businesses that are lucky enough to navigate the system and get a loan are faced with high interest rates and have to put up and verify large amounts of collateral.
This is why it might be right for you to turn to a company like Allied Capital Corp. Allied Capital Corp, or ACC funding, is a company that has solutions for cash flow problems. We call our solutions the “merchant cash advance” and the “business cash advance.” The merchant cash advance gives a lump sum of money to a business that accepts credit cards based on the average volume of their monthly sales. The payback is arranged according to future credit card sales from which ACC deducts a small percentage. The business cash advance works the same way, but is for companies that do not accept credit card sales.
The method of lending used by ACC funding avoids many of the disadvantages of traditional bank lending. It’s fast, even same day. Perfect credit and collateral is not required, and the terms of repayment are very reasonable. Before you go to the bank, you should look into Allied Capital Corp.