"The Great Recession" causes many a hearts to flutter, still. In the wake of that debilitating economic time, officially from December 2007 to June 2009, the $8 trillion housing bubble burst, consumer spending declined, business investments collapsed and the U.S. labor market lost $8.4 million in jobs. Many acknowledge the rise in alternative lending solutions to the recession out of sheer necessity. Banks weren't doling out any money to startups or small businesses. There wasn't money to lend.
That's actually a myth, says Dailyfunder in a recent article. "Small businesses seeking less than $150,000 have been underserved for decades." Nonbanks have not been in the business of stealing customers away from traditional banks, rather they've been trying to serve a market that was otherwise ignored.
Technology Brings Opportunity
One of the barricades to nonbank lenders was technology. Pre 2010, before APIs and algorithms, nonbank lending and merchant cash advance processes were powered by human labor. As technology has blossomed, Dailyfunder notes the growth of financial companies using daily payments throughout the years:
1998 $9,000,000
2010 $524,000,000
2014 $4,500,000,000 (estimate)
You may recall a familiar tagline that gained fame in the mid-90s by Joseph Goryeb, "When your bank says no, Champion says yes." Nonbank funding options have been a big yes for small business for decades. At the moment there might not be a headlining catchphrase, but online lenders like Lendini are saying yes through merchant cash advance and business cash advance options. Possibilities for start-ups who can't qualify for traditional loans, businesses with less than perfect credit, and merchants needing a small, quick boost in cash flow exist, and are growing. There is a faster way to fund.
Learn more with Lendini. Call 844-700-5363 or visit online today.