96% of the Nations Banks Have Tightened Lending Restrictions for Small Businesses.
Tempe, Arizona | September 10, 2010 | 96% of America's banks have increased the restrictions on small business loans or maintained their already overly tight restrictions. These strict lending practices are hurting small businesses and the economy.
This recession has changed how consumers spend money. The tight lending restrictions have banks choking off the credit they lend to small businesses, making it significantly harder to get a loan – impossible for many. Many loan officers are requiring merchants to have a personal credit score of 700 or higher. They want more collateral that can easily be resold. Banks are even limiting how much credit a small business owner can apply for and how the money can be spent. They even want detailed explanations for how the money will be spent. Many merchants have tried to use personal assets as collateral or a personal pledge for credit, but the limping economy has reduced the worth of many collateral worthy assets such as property and stocks; thus leaving small business owners with not enough collateral to apply for the amount they need.
Small firms have played a vital part in leading the way out of economic hardship in recessions past. Businesses need to be able to adapt to the changing nature of their clientèle, but merchants cite a lack of funding as a major reason they can't survive in this economy. With the tight bank restrictions that prevent small business owners from obtaining working capital, merchants have been turning to an alternative form of financing – Merchant Cash Advance.
“A Merchant Cash Advance is a great way for small business owners to obtain working capital so they can thrive in this economy,” says Fastpoint President, Grant Atkinson. A Merchant Cash Advance, like the ones offered by Fastpoint, offers business owners quick and easy access to cash funding. It is not a loan or a form of credit so it's not affected by the tightened lending practices. A Merchant Cash Advance is a cash purchase of future credit and debit card sales. A cash advance is issued to business owners in return for a small percentage of credit and debit card transactions until the advance is paid back. An advance is easier to obtain than a traditional loan, collateral isn't necessary, merchants aren't penalized for slow business as they are with a loan, and most advances are paid back in under a year. “Small businesses need capital to compete in this changing economy and Fastpoint can help,” says Atkinson. “Our simple application process and quick approval time can get business owners the capital they need now.”
Merchants can take advantage of a Fastpoint Merchant Cash Advance immediately and avoid the red tape and headache of a traditional small business loan. For more information about Fastpoint please visit their website at http://www.fastpoint.com. Company President Grant Atkinson is available for interviews. Please call or send and email for an appointment.
Contact:
Grant Atkinson
Grant@fastpoint.com
4700 S. McClintock Dr.
Tempe, AZ 99999
800-867-5309
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For more details on the information in this release, please see:
http://www.frbsf.org/publications/community/investments/0912/moon_john.pdf
