As a small business owner, you know the critical importance of timely and adequate small business financing. However, you may also know from personal experience that banks are not answer to your working capital needs!
That’s because banks are extremely reluctant when it comes to approving small business loans. There are a couple of reasons for this – one that is fairly well known, and one that most people don’t know (because the banks want to keep it a secret!).
The more well-known reason that banks are against providing working capital for small business financing, is that they don’t want to assume any risk. Despite the fact that the Great Recession was engineered in large part because banks were loaning money to virtually anything with a pulse (actually, a cardboard cut-out or fern probably could have received a line of credit back in 2006), today they’re extremely risk averse – to a fault.
The less well-known reason is that it costs banks about the same amount of money to underwrite a small business loan for $50,000, as it does to underwrite a large enterprise loan for $3 million. And so banks get more bang for their buck by serving larger clients.
So, now that you know why banks aren’t the answer for obtaining working capital for small business financing, the big question is: where can you turn? The answer so that is simple: Mulligan Funding!