AVI Business Solutions

  Small businesses are the backbone of economies worldwide, driving innovation, creating jobs, and fostering community growth. Yet, many small business owners face a persistent hurdle: securing bank loans. Banks seem increasingly reluctant to lend to small businesses despite their critical role, leaving entrepreneurs scrambling for alternative funding sources. This article explores the trends for this trend, its implications, and potential solutions to bridge the gap between banks and small businesses. The Changing Landscape of Bank Lending Historically, banks were the go-to source for small business loans . However, lending to small businesses has declined significantly over the past few decades. According to the U.S. Small Business Administration (SBA), the share of bank loans going to small businesses dropped from 35% in the early 1990s to under 25% by 2020. Several factors contribute to this shift. Stricter Regulatory Requirements Post-2008 financial crisis, regulations like t...

  In today's fast-paced business environment, securing funding can be a make-or-break moment for small and medium-sized enterprises (SMEs). Traditional lending institutions, such as banks, often impose stringent requirements that exclude newer businesses or those with less-than-perfect credit histories. This is where alternative lending steps in, offering a lifeline to businesses that might otherwise struggle to access capital . But how do you know if your business is a suitable candidate for alternative lending? This article examines the ins and outs of alternative borrowing, its benefits, and the key factors that make a business a suitable candidate for this financing option. What is Alternative Lending? Alternative lending refers to non-traditional financing options provided by lenders outside of conventional banks. These lenders include online platforms, peer-to-peer lending networks, merchant cash advance providers, and other fintech companies. Unlike traditional loans, altern...