Where to Go When the Banks Say No

It is an understatement to suggest that obtaining traditional bank financing or increasing current loan obligations is difficult for a small business owner in today’s economic situation. In recent years, banks have tightened their credit requirements and will continue to do so for the foreseeable future.

Credit lines are being cut, and funding to support expansion and new business prospects and for businesses with no capital is scarce unless you’re willing to give up equity, which is still a challenging proposition. Even companies with long-standing relationships with their banks are having difficulty renewing their lending facilities on an annual basis.

Where can today’s small company owner get the funds he or she needs to keep the firm running, pursue new development possibilities as they arise, pay vendors on time, and meet weekly pay stubs? Accounts receivable financing is one option.