Right now is a great time to open a business. There are a variety of emerging trends in small business loans that have made it easier than ever to acquire loans with favorable terms that will keep businesses growing. The following are some of the most popular trends in small business loans.
Alternative Lenders
A variety of alternative options have emerged that are viable avenues for merchants that can’t get financing from banks. Merchant cash advances are a popular alternative option that allows lenders to take a percentage of their sales every month. In this arrangement lenders will always get paid, foregoing the usual payment by a certain date arrangement.
Easier to Get an SBA Loan
The Small Business Administration (SBA) has made it easier to attain small business loans. While they aren’t lending out money, the SBA is guaranteeing an increasing portion of small business loans. Still there are multiple qualifications that applicants will have to traverse before getting funds. Interested parties should investigate programs like the SBA Express Program, the 7(a) Guaranty Loan Program,, and the Micro Loan Program.
Boost in Middle-Market SBA Loans
In 2010, the loan amount for medium sized businesses increased to $5 million for the 7(a) loan program. This increase helped thousands of mid-sized businesses get the funding necessary to keep their doors open and businesses growing. Previously, these loans were only reserved for new businesses or small operations. Now experienced medium size businesses can attain the millions of dollars necessary to upgrade systems, staff, support, and inventory instead of making due with loans designed to fund smaller operations.
Mobile Lending
A new trend in small business lending is mobile lending. This type of lending has made it easier than ever to access working capital using smartphones. An increasing amount of alternative lenders have apps that let small businesses manage accounts on the go. Merchants can qualify from their phones and get cash in only a few minutes.
If your business is in need of a merchant loan, FAM is an experienced lender that will get you crucial funds in only a few days. Contact First American Merchant Advance to attain working capital at a fair rate. Our merchant advisors will connect you with the right program for your specific business needs. Start your application today.