Millions of SMBs are Wrongly Denied Funding

It’s a reality even today that SMBs are frequently rejected for new business funding. Many times, the small business is not even told the reason why because the potential lender doesn’t have an obligation to do so. It turns out that the reason is often technical in nature – a lack of reference points or insufficient information to approve a loan – and not directly the fault of the small or medium-sized business at all.

Funding for SMBs: An Exercise in Frustration

For entrepreneurs seeking funding to start their business or take it to the next level, it’s extremely frustrating. Particularly, the lack of any feedback about what was wrong or insufficient with their business loan application to get approval leaves them devoid of the knowledge they need to adjust, try again, and succeed in getting the funding they require.

Sadly, many entrepreneurs just give up at that point and go no further.

How Big is the Problem?

When you consider that the majority of SMBs fit into the small business category – 1 to 100 employees – it’s easy to see the problem. According to Become, a significantly high percentage of small businesses never get past the solopreneur stage.

According to data from 2012, there were at least 22 million businesses owned by either a man or a woman in the USA. The total receipts of $950Bn tallies to $44,000 per non-employer business, bearing in mind that some performing better skewed the averages higher; the mean income would be lower.

Without access to proper funding, it’s clear that many of these tiny businesses aren’t able to fund their own expansion from annual revenues alone. This leaves their founders unable to fulfill their business vision which is often grander than a one-person operation with no employees.

A New Type of Lending

Lending Express offers a new kind of business lending that resolves many of the difficulties described above. Loan applications are pre-vetted to root out any mistakes or omissions or a lack of sufficient information preventing a successful submission. This gets over the first major hurdle that has held back so many SMBs in the past.

Lenders that are favorable on offering loans to small businesses are checked to see how a loan application matches their criteria for approval. The terms of each loan are checked to see how they match up with the capabilities of the borrower to repay and to meet the required terms. Once one or more lenders are found with a lending product that’s suitable to the small business, a funding plan is put together to work towards completing a successful business loan.

The lending process is painless and as transparent as possible to provide enough useful feedback to the business owner, so they still feel in-the-loop at all times.

It’s no longer necessary for small entrepreneurs to have great ideas and then dread how to go about funding a business based around them. Thanks to business loan aggregation, it’s easier than ever to find friendly lenders to fully support young business ventures.