Poll for Small Business Finance Strategies

Small to medium-sized enterprises (SMBs) face issues today as evidenced in The New York Fed’s recent Small Business Borrowers Poll. While 544 small businesses in New York, New Jersey and Connecticut were polled by the central bank during April and May.

The result came in with 13 percent of small business loan applicants got the full amount of credit they were seeking over the previous year, and only a partial amount of credit was approved for another 36 percent of them.
Over half of the loan applicants sought which is $100,000 or less. Interestingly, this being short-term working capital for startups –the lenders seemed more likely to turn down these microloan applications than larger loan applications.

Businesses in the New York region that were funded with a small business loan had 233 percent more employees than firms that could not secure a small business loan, and the lenders did not want to lend to small businesses that could not show increasing sales, or existing bank relationships.

According to the poll, 59 percent of New York area small businesses applicants did not even apply for a loan, during May 2011 through May 2012. They did not believe that that could get approved.

The Interface Financial Group’s factoring services enable the many businesses do not get paid right away for delivered products/services, this negatively impacts cash flow, making it challenging for the business to produce new orders in a timely fashion. Accounts receivable factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent of the invoice total. IFG looks at the creditworthiness of the client’s customers and can provide funding within as little as 24 hours.

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