According to a recent article over the past two years, more than $40 billion in small business loans has disappeared.
Access to lending has been a challenge at a time when small businesses are struggling with cash flow. But banks are in a difficult position: Regulators are tightening lending standards, while banks are being instructed to increase small businesses lending. Since businesses need cash flow to grow, conventional loans are growing increasingly scarce.
However, cash obtained from invoice factoring can be used for the same business purposes that cash borrowed from a traditional business lender can. Completely different that incurring additional debt by borrowing from a bank, accounts receivable can be converted to cash through the invoice factoring process.
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