Getting Unsecured Small Business Loans
Jim on Sep 8th 2010
It isn’t just the badly-run irresponsible business that is scrambling for a loan anymore; solidly run businesses with great ideas are being turned down by banks left and right too. Unsecured small business loans are the only financial model that will support them anymore. And these only seem set to rise, what with President Obama having announced at the State of the Union address, that he proposes to set up a $30 billion line of credit to community banks, so that they can help resuscitate small business in the country. Large financial enterprises like Wells Fargo that have long championed the cause of the small business, have quickly caught about 5% in their small business loans. It is about time.
Small financial firms have great purchase order financing options for people like Mr. Richards,. If he shows them a contract that says that someone is willing to buy his merchandise, they will extend a short-term loan for it. This makes a lot of sense, but there are no more than maybe four or five firms in the entire country that do this kind of business.
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