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April 11, 2013 /PRNewswire/ -- After years of recession, the number of business owners being approved for a small business loan is finally beginning to increase. The recent signs of recovery in the lending market suggest the efforts of lenders like Advantage Capital
Business Loans are finally beginning to make an impact on a harsh lending environment that has left many business owners unable to secure necessary loans. The Associated Press recently reported that at the end of the fourth quarter of 2012, the total amount of outstanding
small business loans came to
$586 billion, up from
$584 billion in the third quarter. The gain is the first since the FDIC began tracking loans on a quarterly basis at the start of 2010.
Advantage Capital Business Loans was created to serve the needs of small and medium sized businesses. With many of its founders hailing from a small business background, the firm was designed to create simple business loans with a high approval rate that favors small and medium size businesses. Thus, it's no surprise the ACBL model is making a difference for business owners.
There is still a long way to go in terms of creating a more conducive lending market for small business owners. A recently released survey from Thomson Reuters and Paynet showed that small businesses grew more reluctant to take out loans to buy equipment or expand in February, continuing a weak trend in lending that the companies had documented throughout 2012 and early 2013. "Small businesses have been reluctant to borrow since the recession because they've wanted to lower their debt burden," says the Associated Press.
To the founders of ACBL, the disconnect appears clear – too many traditional lenders and big banks utilize impersonal application methods that force every small business into a few broad categories. This technique always favors the lender and major corporations, while leaving most small businesses to slip between the cracks, unable to receive necessary funding.