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Community Development Financial Institutions offer small businesses credit alternative

Aug 18, 2012 Sean Albert

Community Development Financial Institutions offer small businesses credit alternative
The financial crisis may have hit nearly four years ago, but small businesses are still feeling its effects, especially on their ability to acquire financing.
 As a result, an increasing number of companies are turning to alternative credit options to meet their fiscal requirements. While some of these are gaining ample media attention – such as crowdfunding – the majority of small business are turning to less "social" options. One alternative credit option that is growing in popularity and utility is Community Development Financial Institutions (CDFI). According to the Fox Small Business Center, these entities are certified by the Treasury Department and primarily help those unable to meet the requirements for traditional loans. In particular, CDFIs are skilled in using multiple participations, U.S. Small Business Administration guarantees, flexible amortization and long-term payouts, the news source reports. Additionally, for businesses looking for a quicker, more short-term solution, short term lenders and merchant cash advance programs may provide relatively hassle-free financing opportunities for companies in a bind.