While we tend to associate “spin” with politicians, one of the most staggering mis-truths circulating in the business lending market is coming from banks themselves, who are saying that the real reason that they aren’t lending to small businesses is because applications are way down. In other words, it’s not the banks that aren’t interested in making loans – it’s that small business owners /are being extra cautious when it comes to borrowing.
Well, as an alternative lending company that has been in business since 2008 and interacted with over 50,000 customers over that span, allow us to say with both certainty and authority that this is NOT true whatsoever; and the fact that some banks are saying otherwise is not just irresponsible, but it’s outright offensive!
Unrealistically Stringent Credit Requirements
The real reason behind the dramatic reduction in bank business loans since 2008 (i.e. when the Great Recession erupted), is that banks themselves have made it virtually impossible for small business owners to qualify for a business loan unless they have both a long and perfect credit history. Two years is typically the minimum, but some banks require more before they’ll even consider approving a business loan application. And as noted, the credit history has to be flawless – which means no dings or dents, even if they happened several months or years ago.
And so, by imposing unrealistically stringent credit requirements on small business owners, banks can shrug and say: “Hey, it’s not our fault we’re loaning a fraction of the amount we did pre-2008, we just aren’t getting enough qualified applications.” But what they aren’t revealing is that they’re the ones who’ve made it so impossible in the first place!
Cynical isn’t even the word to describe this. Unethical and outrageous is more like it – especially since most banks wouldn’t even exist today were it not for the support of their small business customers over the years. What’s more, it’s the employees of these very same small businesses that get mortgages, make investments, and help improve their banks’ profitability – which their bank, in turn, uses to focus on large and enterprise business customers. How is this fair and right?
Getting a Business Loan with No Credit
At Mulligan Funding, we believe in the potential and power of small businesses, because that’s where we come from, too. If your small business needs an infusion of cash so that you can cover an expense, make an investment, or seize a golden opportunity before it’s too late – and if you have no or imperfect credit – then contact us today, and learn about our transparent business loan programs.
Our experts will provide you with honest, straightforward information to help you make a decision that’s best for your business now, and into the future. Because you deserve respect and support. Not empty promises and outrageous spin!