Financing

Banks have all but stopped lending, so entrepreneurs are turning to nontraditional sources of funding to keep their businesses running.

Unable to get bank loans and credit lines, small business owners are turning to other sources for the cash they need to run their businesses.

Bank financing is harder to come by than ever: The number of small businesses using bank loans is at a 15-year low, according to the National Small Business Association. The SBA’s flagship loan program, which offers banks guarantees on loans they make to qualifying small companies, backed 30% fewer loans in 2008 than it did in 2007.

“With SBA and other banks down dramatically, the past six months have seen both small and medium sized companies turning to credit based lending in record numbers for their business funding needs” said Howard Witkin, CEO of Financing.org. Business funding is still available and credit based is the way to go if a business is looking to expand or just keep their doors open.” he added.

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