Well this sucks. As of last March 2011, small business loans of less than $1 million fell 8.6% from a year ago. The decrease most likely involves smaller banks as they are the ones who tend to fund small businesses.
Well, thank for all the BIG bank bailouts – that’s sure to help take up the slack and . . . oh wait:
Another analysis by the Federal Reserve Bank of Kansas City found big banks’ loans to small businesses dropped 14% over roughly the same period, according to the Wall Street Journal.
Well, this is bad news not only for small business owners looking for capital but for the unemployed because smaller businesses drive roughly 60% to 80% of all new job growth.
Well, thank God for private equity markets. Those have always been there to help small businesses obtain funding and I’m sure . . . oh wait:
[Since the financial crash in ‘08] a lot of private equity funding is being used to prop up weak existing investments, which leaves little excess capital for investing in new businesses.
OK. It’s the end of the world . . . or is it?
Peer-to-Peer Lending to the Rescue
Bill Bartmann, a self-made billionaire & business consultant thinks that more and more small businesses will turn to alternative sources of funding, and the emerging P2P lending industry is poised to take advantage. The P2P industry has been steadily growing since its inception and even now, during the first few months of this year, which seem to be turning out to be the first few months of the Great Stagnation, the industry has continued to see month over month improvements. It’s as if peer-to-peer lenders aren’t even on the same planet as the rest of the financial industry.
Peer to peer lending offers several advantages to small business owners:
– Personal credit needed so you do not need to submit your business financial information.
– The process of pre-qualification to a personal loans happens in a few clicks and do not affect you credit score.
– Peerform allows you to save money on your financing by giving you other loan amount options.
– All your documents needed can be uploaded directly through the website.
– Payment are scheduled automatically allowing you less overhead and more time to focus on growing your business.