Will Traditional Lending Ever Improve?

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“…the entrepreneurs who drive this part of the economy continue to complain that access to credit two years into the recession remains scarce,” writes Reuters’ Bryan Snyder, and despite constant news of an improving economy, sources everywhere are still speaking of the difficulties of securing small business loans.  Snyder continues, quoting Todd McCracken, president of the National Small Business Association who said, “…it’s now that we see some signs of a potential recovery that we need credit the most. Without credit, the recovery is not going to happen.”

Though small business owners may still find that traditional lending is as tight as ever, alternative methods of business funding such as merchant cash advances are available and providers are attempting to make this business funding method even more readily available and useful for small business owners.

MRI, for example, has done this by creating a variety of programs that extend an opportunity for business funds, not only to the business owners with the lowest credit scores and monthly credit card processing rates, but also, to those with good to excellent credit scores and higher monthly credit card processing.  These programs were developed in attempt to make sure that every small business owner can benefit from a merchant cash advance.  Through MRI’s funding programs, riskier merchants get the chance to secure business funds when other lenders will have nothing to do with them, and merchants with solid credit scores and credit card sales are rewarded with the lowest industry rates and loan terms of up to one year.

There is a general hope that bank lending to small businesses will soon pick up, but in the mean time, small business owners should take advantage of merchant cash advance availability.  Moreover, even when traditional lending does improve, small business owners can still use merchant cash advances in addition to bank loans or instead of them, when they are in need of fast, convenient business funds.