Credit and money are still in really tight places, and this is absolutely no secret. What is unknown in the current economy is what small businesses should do and where they should go now. Many small businesses are finding themselves struggling and even drowning in an attempt to overcome the hardships presented to them by the credit crunch. What can a small business do in order to survive during this time of economical uncertainty?
The good news, above all else, is that there are absolutely still options out there. If you want to be able to find the money that you need to either start or grow your business, you may need to be a little more creative, focusing on looking for money in new and interesting places in order to obtain the financing that you need. The era of easy credit is certainly over, but that does not mean you are not without a variety of unique and creative options.
According to Senator John Kerry, the largest source of long term small business loans and capital has fallen by nearly 50 percent in comparison to the same period of last year. The SBA 7(a) loan program used to be the largest source of small business capital, but now it is facing some very bad news. So what happens next if your business needs capital and you are not sure where to go to find it? Here are some options for you -
- Bank loans are a good way to go if you are smart enough to avoid the large ones.
Small banks are still the friend to small businesses even when big banking institutions are unwilling to offer financing. Community banks are still handing out loans when necessary, as well as offering lines of credit. This is because small regional banks are run conservatively, so they do not have the same number of toxic loans that the large scale lending institutions do. They are usually local institutions, which mean they have deep roots coupled with significant assets. They have also proven over time to be better lenders in general, so they still have plenty of assets to lend to you.
- Credit unions are another way to go for a loan right now.
They are not exposed to the same risks that the large banks are. They have actually seen their small business loans portfolio increase, even during these times of economic struggle.
- SBA loans are a good source of lending, but a large portion of this lending is drying up.
These loans are most commonly government backed, so there are less loans to give, but that does not mean that SBA loans are not an excellent way to go in the right circumstances.
- Credit cards are also a traditional way to fund a small business dream, and this still remains true.
It is important that you do not get over your head however, as credit card debt is a large contributor to the rising amount of consumer debt in this country.
Photo Credit: 1
Originally posted 2008-11-12 05:28:46. Republished by Blog Post Promoter
Related Posts -
Recession Not Through With Us Yet While it may seem that the nation's economy is taking a turn for the better and strides toward the positive are being made, the recession times we have been experiencing are not exactly over. With so many people starting to regain confidence in their personal finances again with just the...... -
Different Types of Short Term Investments Short term investments are the most ideal form of investing if you want to invest over a period that is relatively short. Cash manager accounts make it possible to access your money whenever you need to. Fixed term deposit investments secure your money for the entire length of the term....... -
A New Way to Consider Personal Finance Through the past few years, many of us have been conditioned to believe that being in debt is a bad thing. While it certainly may be true that debt is dangerous in the wrong hands, there are actually many ways that debt can be very effective and can actually help...... -
Blogging is Big Business For those that are interested in building up alternative streams of income, blogging has become very popular. We've all heard about monetizing content, adding in advertising and finding sponsors, but there are some folks out there that have taken their efforts to the next level and seen they pay off...... -
Start Treating Your Finances Like a Bank If you want to start making money, you’ve got to stop looking at your finances like a regular person and start treating your checkbook like you work for the bank. This is the key towards successful management of your finances and will help you grow your current income and create......
Related Websites -
Finovate Startup 2009 Live Twitter I am attending Finovate Startup 2009. It is an action packed 1 day format which I belive will lend itself perfectly to a live twitter. Stay tuned it should be an amazing day. http://twitter.com/BlogTrafficExch In the break I have scheduled some talks with SimplFi, Mint, and Calendar Budget. I am...... -
How to choose & open a checking and savings account If you've never had a checking or savings account before, the process of opening one might seem intimidating. But it's really just a matter of figuring out what you're likely to need, and then searching for banks or credit unions that will meet those needs. At a minimum, search for...... - BofA Names Top Banking Business Heads - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times Bank of America announced the names of the senior business heads for its corporate, commercial and investment banking operations on Thursday in an internal memo, obtained by Reuters. The changes go into effect after the company completes its acquisition of Merrill Lynch, which goes to a vote among shareholders at......
- Illinois Governor Suspends All State Business With BofA. Um, ok... I imagine we are going to start seeing more stuff like this as the credit crisis gets worse, no? In a stinging note of support for the laid off workers that have taken up residency in Chicago's Republic Windows & Doors factory, the Governor of Illinois has suspended......
- Activities necessary for a successful home based business Live the American dream of having a business, but avoiding the high overhead and start-up costs of a brick and mortar location. If the thought of working from home is attractive, but you do not know where to start, here is a procedural article. Activity 1 Choose what portion......
- Credit, Charge Cards Trading Cards Collectibles
- Service Businesses Businesses for Sale Opportunities
- Large Cents Coins US Coins Paper Money
- Large Size Notes Paper Money US Coins Paper Money
Categories:
Banking, Debt, Money, Personal Finance, credit, credit cards, small business
Tags:
0 comments ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment