Lending money across the United States increased by nearly 15 percent in April 2013, from a recent study, as compared with the same month last year, thanks to the growing economy. It was not significant enough to attract more borrowers. Furthermore, the federal government has been criticizing the local and state banks for not lending to enough people, reflects that the real estate and other industrial sectors need to pick up in full intensity where it left off before the economy fallout in 2008.
Banks have enough cash as loans for bettering the economy for everyone and most loan applications that are made fall into either expanding the business or making it stay afloat. The demand for loans are from all these trades who are instrumental in creating future jobs, but most applications are rejected due to various reasons.
The fact is, according to the National Federation of Independent Business study, employment growth in the business sector has been negative since April 2007. To make matter worse, the overall consumer confidence is at an all-time (11 month) low. Even though small businesses account for 60 percent of new jobs, they are shying away from borrowing due to the prevailing uncertainty.
Accounts receivable invoice factoring is one way the government is working with banks to provide the capital needed for business funding. With this plan, the business can make enough money to purchase more inventory in a given time.
Here is how it actually works: The plan assists small business owners by providing short-term capital so that they can grow their businesses or improve their cash flow factoring in unpaid benefits for delivered products and services. The factoring company is allowed to purchase certain invoices at a discount. These companies consider the creditworthiness of the customers of the business, irrespective of sales volume.
How Our Coachella Valley Banking Practice Law Firm Helps Lenders and Borrowers
Our Coachella Valley corporate attorneys help corporations with complex legal matters, assist in corporate succession plans, and more. Our Coachella Valley banking practice law firm assists lending companies and borrowers with loan transactions that are either secured or unsecured. Call us at (760) 322-2275 for a free consultation or more information.