The approval rate for small business loans in the U.S. accounted for a record high in September. This is another post-recession record registered recently. If you want to know more about the topic and discover unique high risk ACH processing, this article is right for you.
High Risk ACH Processing & Small Business Loans
Working capital is necessary for any type of business. So, without the right funding, your business can’t thrive and move to the next level. Let’s see what’s going on in the small business funding space in the U.S.
The SBA (Small Business Administration) states that $5.434.518.200 in 7(a) loans were approved in 2018, which was a record amount. That was higher as compared to $4.996.271.600 in the previous year. As for big banks, they gave approval to only 27.8% in August of the businesses having applied for a loan. The applicants’ credit score (below average) played a decisive role in this.
That’s where reputable alternative lenders step in. They provide the fastest and easiest path for getting access to the necessary funding for your business. So, if you can’t qualify for a traditional loan, no need to worry: just find a true alternative business funding provider that’s committed to offering exceptional merchant services, including high risk ACH processing, in the industry.
Small Business Loan Approval
During the last 2 years, almost 30% of loan applications have been getting approved at big banks, as the Biz2Credit Small Business Lending Index shows.
During the summer months, the approval rates for small business loan applications reached another record (27.7%) at major banks after the recession period. What’s more, they reached above 50% at small banks in July, as the most recent Biz2Credit Small Business Lending Index™ shows.
The approval rates for small business loan applications among alternative lenders fell to 56.4% as compared to 56.5% in September.
To sum up, starting your own business can be intimidating. However, if you take the right steps, the process can be rewarding. Of course, you can’t do without a great business plan. However, financing is no less important for the success of businesses. Be aware that the approval rate of small business loans has reached another record high during this post-recession period.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their high risk ACH processing solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.