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Traditional Lending Not Satisfying Small Business Needs for Credit

Now that we’re nearly a third of the way through the third quarter, let’s devote some time to understanding the economic landscape that the US small business sector is facing in the second half of the year.

Capital Alliance looks to the NFIB report on small business to make a point about helping small businesses obtain creditFor an accurate interpretation of the economic big picture, we look to a valued report put out by the National Federation of Independent Business (NFIB). The NFIB has been collecting economic data trends from small business quarterly for over 40 years, increasing the frequency to every single month nearly 30 years ago.

Their latest report concerns itself chiefly with the fact that their Optimism Index fell 1.66% to a score of 95.00, down from 96.60. This was after a very encouraging second quarter which saw the index climb to that high of 96.60 at the end of May all the way from a 4 month low of 91.40 during the first quarter, at the beginning of March. It seems that the index cannot put in a sustained run any longer than 4 months, though worry was stifled somewhat by the silver lining that the index did not go lower than 95.00, which is a somewhat promising takeaway.

Despite the fact that their most of their indices were trending downwards, two indices were looking up (at least marginally so); both of them being labor market indicators. Out of the small businesses tracked by the NFIB, an average of 0.05 new workers per firm were being hired in June. Despite this being only a small increase on average, this was the ninth month in a row that this index saw an increase, and a run of consecutive gains like this hasn’t been duplicated since 2006.

The job creation indicators marked a 2 percent increase, bringing it within range of what is considered normal for a growing economy. This was also the highest it’s been since 2007.

One of the NFIB’s indices that we took particular notice to was their Credit Markets indicators. Six percent of the small businesses reported that their credit needs were not met. And these levels are just above a record low. Capital Alliance specializes in helping small businesses acquire capital. We’re committed to helping companies grow both by getting businesses the capital necessary for growth, and also by offering expert insight into what is going to be the best way to help you progress to the next level.

Don’t let outdated traditional methods of obtaining loans stifle your vision for the future of your business. While these loans may be prohibitive due to a credit score that the banks may feel isn’t desirable, Capital Alliance is not bound by any such rules for lending. A healthy cash flow and history of good-faith payment performance may be all you need to secure up to $250,000 with extremely flexible terms and no collateral required!