Apr 25, 2013 Sean Albert
Alternative credit lenders remained the most likely source for main street owners to seek loans during March. The latest lending index from Biz2Credit showed that 63.6 percent of small business loan applications were approved by merchant cash advance lenders last month. Biz2Credit's results are based on information the company gathers from over 1,000 small businesses.
Although the number represents a 0.1 percent dip from February's approval rate, short term lenders remained the most likely to approve a loan for a mom and pop business.
Credit unions continued to decrease the number of small business loans given, with just 45.5 percent of applications proving successful in March. That was a 0.4 percent drop from February. It marked 10 consecutive months in which credit union loans dropped.
There was also a decrease in lending to small firms by banks with more than $10 billion in profits. Just 15.7 percent of big bank loan applications were approved in March.
Short term lending has become an increasingly viable option for small business recently as big banks have tightened their requirements for loans. Alternative lenders have proven to be a trusted source of capital funding for main street owners.