7:27 AM
A new article in The Sydney Morning Herald – Business Day edition by Shaun Drummond illustrates the worldwide problem of small business access to funding capital.
The article looks at a survey of senior business managers by East & Partners in a March quarter survey. The survey indicates that 39% of small to mid-size businesses had considered using alternative financing in the last 6 months. An astonishing climb from 23% just three years earlier.
This increase is specifically tied to unsecure loans, which large, brick-and-mortar banks do not usually offer.
The study also finds that general awareness of the alternative funding landscape is still relatively low, indicating that an increase in customers knowing about these programs might increase the percentage even more.
While these numbers are not specifically relative to numbers here in the US, it does shed light on the fact that access to capital is a worldwide problem. Small business owners everywhere are looking to the alternative funding landscape to get the money they need.
Credit Pathway is an alternative funding company specializing in helping new, startup and existing businesses with low credit history obtain the financing they need. With our signature Line of Credit, we can help a business get off the ground with minimal fees and 0% APR for the first year.
The article quotes the report
"[Banks say] they are open for business, but the speed of turnaround doesn't gell well with the PR. When you come down to the customer testimonials the CFOs are often frustrated."
The overlying problem with big banks is that they do not know how to treat a small business, and even large businesses. The “poor culture” at big banks is an endemic problem we see at banks here in the US. The process of requesting a significant amount of paperwork and requiring businesses to attain unrealistic standards prior to even starting is a huge deterrent to any new or unproven business.
Many of Credit Pathway’s customers come to us after they have received the “Heck-No Letter” as many refer to. It is a letter from your bank nicely indicating that there is no way in the world they will give you a penny, but to come back once you have money, so they can lend you some once you really don’t need it.
If you are a small business and cannot find the funding you need at a big bank, look to Credit Pathway and our signature Line of Credit to help get you going. We are here to help.
The original article appears at:
http://www.smh.com.au/business/banking-and-finance/banks-feel-the-heat-from-new-business-lenders-20160418-go8o6e.html
