Loan Supply and Demand Are on the Rise

[Linda King]

Our business has certainly seen more requests for financing options within the last 3 months so this was an interesting article find from John Okoye on Bank Managers seeking the same...

It is true that easier access to creative finance means business owners see more flexibility. So are the banks starting to adjust or are people combining non-traditional and traditional financing for their Projects???

Some of his points: Many experts have surmised that the unavailability of credit has played at least small role in the economy’s sluggishness over the past four years. John quotes Economist Bruce Yandle, “Right now bank lending is stagnant, and loan activity is always a indication of growth–new housing, new cars, expanding businesses, and more”.

Better Terms

If bank managers are correct, expect to have a slightly easier time getting credit for your business. While standards will almost certainly not be back to pre-recession levels, one would expect that they will be much better than they have been over recent years. In order to fully take advantage of this, shop around. Make sure that you get the best loan terms possible for your business.

Better Economy

Responders to the survey weren’t simply optimistic about lending for small businesses, they were bullish about lending for individuals as well. This means that in coming years we can likely expect consumers to have a little more money available to contribute to the economy. Many experts have suggested that increased lending has a direct correlation with the performance of the economy as a whole.

Of course, the availability of more money far from guarantees that it will be used in the right way. The truth of the matter is that many are still very skeptical of the economic conditions and are wary of big expenditures.

More Flexibility

The main benefit that easier access to money provides businesses is more flexibility. Because it is easier to get money, small businesses can now make better decisions. Less constrained by having little cash, they can do things that are better for the long-term health of the business without focusing solely on financing.

We see many clients utilizing a combination of financing to start, continue or finalize Projects! Our strongest recommendation is to make sure it fits your needs in a responsible way... Nothing is worse than seeing a new client who has previously gone too far into a situation that ultimately failed!