According to a recent article on CNNMoney.com, titled A grim year for small business lending, "The SBA Loan volume plunged 36% in 2009 as banks slammed their vaults shut to small businesses."
This is yet another example of how an alternative financing program such as a merchant cash advance is starting to be looked at by business owners who in the past utilized traditional loan products such as a SBA loan or a small business unsecured line of credit from their bank.
As the media is reporting time and time again, small businesses can not get access to the necessary capital they need to drive their business. This will lead to an increased opportunity for those in the merchant cash advance industry as we are starting to see an increase in applicants who in the past utilized their local bank as their source of capital.
Furthermore, the lack of traditional loan products readily available in the marketplace can be a tragic situation for many small businesses if they can not get access to capital for the upcoming holiday season - which can amount to 50% - 75% of many retailer's annual sales.
It will be interesting to see the demand levels in the coming weeks for the merchant cash advance product as retailers looking to borrow from their banks are being shut out.
Saturday, October 17, 2009
Thursday, October 8, 2009
Merchant Cash Advance Provider CEO David Goldin of AmeriMerchant Featured Again In The New York Times
I want to thank Brent Bowers again of The New York Times for featuring me in a follow up article in today's business section of The New York Times. I believe AmeriMerchant is the first and only merchant cash advance provider to be featured in The New York Times.(now twice). The original article was in August 2007 regarding the AdvanceMe patent situation. This article features four entrepreneurs, myself being one of them, that were previously featured in the paper and following up to see how they are holding up and prospering in this challenging economy. An online version of the article can be found here