Apr 25, 2013 Sean Albert
More small businesses are looking to short term lenders instead of big banks for loans. A recent article in Forbes highlighted the boom in advance loan popularity by small companies that are looking for alternative ways to find capital.
Over the last five years, the source says that the short term lending industry has improved regulations and is harboring a trusted reputation among business leaders. As large banks and traditional loan providers have tightened lending requirements, many small firms have been forced to look elsewhere. Using short term loans has become a form of alternative credit for most, as the premiums paid can be similar to those on traditional credit cards.
Emerging organizations relating to the industry have started to promote unified standards in order to enhance the sector's reputation among consumers and business owners.
One such entity is The North American Merchant Advance Association. In 2009, it drafted a six point best practices paper for its members to follow. Advance loan companies can learn from this approach. Making sure the company adheres to specific policies regarding proper operations and professionalism is a great way to establish trust with clients.