A very important ethic in small businesses is the trust factor wherein the value of spoken word has a deeper meaning. That is an article of faith in the world of money-lending and it is no different when the lender is a reputable and legitimate business like Direct Lenders Funding. Businesses have to rely on debt not just to grow and expand but oftentimes, to tackle some or other crisis. Extending credit worth over $200 million to small businesses in over 5 years has endeared this company to the community of small businesses across the United States. More so, because such credit was provided in quick time, when the borrower needed it most.
Business viability scores over credit history
There can be no greater manifestation of trust other than to overlook the past credit history of a borrower and focus more on the viability of his business. This is a confidence booster for the borrower and it will encourage him towards a better effort to make good use of the funds for the benefit of his business. When this borrower is able to return the loan on time with interest, he gains further confidence to reach a larger market. As he works on his growth plans he realizes the need for small business funding and receives it again from the same lender. In this way, the cycle of trust also grows.
Small businesses have unique needs
Typically, small businesses run on very tight budgets and are always on the lookout for credit. They realize that in order to grow faster, they need to make more efforts and build up more capacity and output. Hard work and prudence is vital but they cannot scale up growth without additional capacity. On the other hand there are numerous cases of startups shutting down even after adequate funding. A company like Direct Lenders Funding will not divert its focus from the business it is going to fund and look at the failed startups before approving a loan. They will look at the potential of the business to grow fast and service its debt effectively.
Build lasting relationships with small businesses
A funding agency focused on serving the small business sector knows well that there is comparatively much less risk in lending business capital loans to such businesses than to big organizations. The popular saying, ‘The higher you go, the harder you fall’ sums up the risk in big project funding. Losses incurred on account of poor debt servicing by a borrower is manageable as long as it is a smaller amount but a bigger amount going up in smoke can complicate relations between the lender and the borrower. Small businesses service their debt much better and enjoy great relations with their funding agencies.
Funding agencies that are focused on providing fast and easy credit to small businesses have the potential to grow into mega lenders in terms of the number of loans they sanction. Since over 44% of all economic activity in the US is in the small business sector, the scope of growth is enormous. The US has the biggest economy in the world and operating in 44% of such an economy offers tremendous scope of growth both for the borrowers and the lenders. In the wake of the Covid turmoil the biggest losers have been small businesses and as the economy is staging a recovery, funding small businesses to start afresh will help the economy recover faster.