According to the results of a 3-year study just released by the
United States Chamber of Commerce (USCOC), demand for small business loans is robust and growing at a powerful pace. According to UCCOC spokesperson Jonathan Griffin, more than 120,000 small businesses were included in the study, which was conducted between 2007 and 2012.
The businesses that participated were broken down into three different groups, namely those with gross sales under $1,000,000; those with gross sales of $1-$5 million, and those with gross sales of $5-$10 million. More than half claim that their business credit needs have gone unfulfilled, while 23% reported that their demands for credit have only been partially met. Meanwhile loans for less than one million dollars grew at 15% a year, and show no signs of slowing down anytime soon.
Small businesses loan requirements are routinely ignored by banks, because smaller loans produce less profit for those hard money lenders due to the rigid way they structure their business model. But niche credit and finance companies that do step up to fill that void can expect great returns. The profit margins or rates they enjoy average 3% higher than what conventional lenders like banks are able to earn.
Meanwhile part of the study asked 3,000 small business owners if they use conventional banks or other sources for their own financing. A whopping 63% said that yes, they do use alternative lenders - while only 25% said they use banks.
Chuck Zimmerman, for example, owns a small chain of record stores in Southeast Detroit. He recently used a private money lender to get an inventory loan of $500,000. €The rate was not my concern,€ he said. €Getting the money to keep my shelves filled was.€ That sentiment seems to be shared among a lot of small business owners, who are practical enough to realize that availability of cash is more important than the interest rate charged by the lender.
The Chamber's advice to small business owners is to shop around for the best lender offering the most attractive terms and rates. If you are denied your loan by a bank, the Chamber says, don't become discouraged. There are many alternative sources of capital if you look for them, and many of them can be very competitive.
Myhardmoneyschool.com is a professional Hard Money School where you will get professional hard money broker training and can begin a career as a hard money broker. We are providing business opportunity training with a 100% money back guarantee! That right 100%. Bad economy, good economy it doesn't matter. Today thousands of people are looking for loans and the banks are not lending. You will be able to provide your clients access to the money they need. This is your opportunity for uncapped earnings! You receive your own customized website, access to our proprietary lending platform, training & webinars and the ability to submit your client's loan applications through our lender engine.
United States Chamber of Commerce (USCOC), demand for small business loans is robust and growing at a powerful pace. According to UCCOC spokesperson Jonathan Griffin, more than 120,000 small businesses were included in the study, which was conducted between 2007 and 2012.
The businesses that participated were broken down into three different groups, namely those with gross sales under $1,000,000; those with gross sales of $1-$5 million, and those with gross sales of $5-$10 million. More than half claim that their business credit needs have gone unfulfilled, while 23% reported that their demands for credit have only been partially met. Meanwhile loans for less than one million dollars grew at 15% a year, and show no signs of slowing down anytime soon.
Small businesses loan requirements are routinely ignored by banks, because smaller loans produce less profit for those hard money lenders due to the rigid way they structure their business model. But niche credit and finance companies that do step up to fill that void can expect great returns. The profit margins or rates they enjoy average 3% higher than what conventional lenders like banks are able to earn.
Meanwhile part of the study asked 3,000 small business owners if they use conventional banks or other sources for their own financing. A whopping 63% said that yes, they do use alternative lenders - while only 25% said they use banks.
Chuck Zimmerman, for example, owns a small chain of record stores in Southeast Detroit. He recently used a private money lender to get an inventory loan of $500,000. €The rate was not my concern,€ he said. €Getting the money to keep my shelves filled was.€ That sentiment seems to be shared among a lot of small business owners, who are practical enough to realize that availability of cash is more important than the interest rate charged by the lender.
The Chamber's advice to small business owners is to shop around for the best lender offering the most attractive terms and rates. If you are denied your loan by a bank, the Chamber says, don't become discouraged. There are many alternative sources of capital if you look for them, and many of them can be very competitive.
Myhardmoneyschool.com is a professional Hard Money School where you will get professional hard money broker training and can begin a career as a hard money broker. We are providing business opportunity training with a 100% money back guarantee! That right 100%. Bad economy, good economy it doesn't matter. Today thousands of people are looking for loans and the banks are not lending. You will be able to provide your clients access to the money they need. This is your opportunity for uncapped earnings! You receive your own customized website, access to our proprietary lending platform, training & webinars and the ability to submit your client's loan applications through our lender engine.
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