Small businesses are one of the main driving forces behind the health of the U.S. economy, and the owners of these companies often need to rely on financing to operate or expand and cover overhead costs.
In fact, 41 percent of the estimated 27 million small businesses in the United States applied for a bank loan or line of credit in 2012 to cover these expenses. Unfortunately, it didn’t go too well.
More than two-thirds of small businesses that applied for a bank loan were rejected, while 87 percent were rejected for lines of credit. Oftentimes, this is a result of limited available capital or poor cash flow.
After being turned down for a line of credit or a bank loan, it would be easy to get discouraged and think there is no other option available, but that simply isn’t the case.
Crossroads Financial provides two different types of financing for small businesses that were told “No” by a bank – inventory and purchase order financing.
Inventory financing allows a small business to use current product as collateral for up to 50 percent of the cost. Meanwhile, purchase order financing allows a business to secure up to 100 percent of the funds needed to fill an order.
The approval process is much simpler as well, with Crossroads Financial giving funds or a line of credit to 40 percent of applicants.
With that said, small businesses who are turned down by another financial institution for a loan or line of credit should consider checking out Crossroads Financial for their financing needs.