Demand for Small Business Loans on the Decline
Small businesses needing a loan are facing more challenges as the demand for commercial and industrial loans have nosed-dived heading into 2016. In fact, the demand for loans for large and medium-sized businesses tanked over 11 percent, while the demand from small businesses hit a nearly 13 percent decrease. As a result, businesses just aren’t willing to take the risk as the economy declines.
Evaluating the Risks
Both businesses and investors are hesitant with loans right now as there’s a weak demand for loans. This suggests that the rate of commercial and industrial lending will come to a halt later in the year. Banks are reporting to scale back on their investments until a rebound appears. This, combined with premiums rising quicker for riskier loans, spells disaster across the board.
Right now, many small businesses are simply too scared to risk getting a loan from a lender due to the potential inability to repay the loan amount. However, small businesses aren’t out of options. Alternative lenders are able to provide small businesses with the funds they need without the large risks associated with traditional lenders.
Alternative Loans on the Rise
While traditional lenders may be hesitant to approve loans, alternative lenders like Business Loans Direct are not. We are still willing to help small businesses needing a loan despite the downturn of loan demands. Unlike traditional lenders, we offer less risk, so there’s less hesitation to borrow the funds you need. Our flexible repayment terms and varied loan amounts make it easy to repay your loan, even if business starts to slow.
When it seems like no one else is by your side, we’re here for you to help you get the funds you need with little risk. Contact Business Loans Direct today to get the funds you need to stay in business.