Bad Credit Business Loans are Down
Posted on Thu, Feb 09, 2012 @ 09:23 AM
Bad Credit, Good Credit, All Credit
In actuality, all small business loans are down from last year, 56% according to the latest reporting out of the SBA. Small business loans specifically to women were down 52%. In 2010, the Obama administration set aside $30 billion for community banks to spur small business loans. We would have expected the residual effects of that Program to span well into this year. The problem is that only $4 billion of the $30 billion was ever dispersed. The Treasury department stated that the reason for the limited disbursement was that there were “fewer banks healthy enough to qualify, {and} weaker demand for small business loans.” Whatever the reason, the news is not great for small business owners just as a modest but steady economic recovery seems to be underway. It may finally be time for small businesses to make investments in the future growth of their company, meanwhile the banks are nowhere to be found.
How Bad Credit Loans Should Work
In a functional financial system, money finds its way into the hands of business owners with good ideas and proven performance. Unfortunately, despite having these characteristics, many small business owners are black listed from receiving a bank loan due to bad credit. Bad credit can come about in many ways; tax liens, judgments, and bankruptcy to name a few. Even if the business is profitable and ripe for expansion capital, the bank will pass every time. The solution is merit-based, forward-looking financing. Here at Principis Capital, we’re willing to take a chance on your business even if you have bad credit. We’re more interested in the health and prospects of your current business rather than what you’ve done in the past. Bad credit business loans from the banks have dried up; contact us for more information on an alternative to bad credit business loans at www.principiscapital.com.