After years of little or no growth, a study by the American Bankers|
Association found that banks and other financial institutions were expected to increase their business lending by nearly 9 percent during 2014. The year’s rise in business loans stemmed from both sides of the desk, with banks loosening their lending standards and companies responding to a more confident economy and applying for loans, anticipating that the current low interest rates might start to climb.
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Increased business lending represents a true “win-win” scenario for both parties. Companies (especially small businesses) are able to get needed capital for major investments in equipment, property or to
assist with growth. Meanwhile, financial institutions are able to use the increase in business loans to help offset the current lower demand for mortgages and other consumer loans.
In addition to lower rates and fewer restrictions, businesses are also finding more options available to help them get the cash they need. During the recent recession, business lending options were limited, as
big banks tightened qualifications for loan applications in response to the economic crisis. This opened the door for alternative and smaller lenders to fill the gap. These lenders tend to look beyond credit history, instead taking into account other factors of a business’s health — like transactions and revenue — to deliver loans with quick turnaround and without hassle and red tape. The result is today’s competitive marketplace for business lending, which has opened the
door for companies to have more options than before to get the financing they need.
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In the market for a business loan? We can help! From SBA 504 loans to equipment financing, American River Bank has the right lending solutions for you. Contact us today!