Profitable small businesses can rapidly go out of business if they run out of money. Similarly, unprofitable unprof small companies can be survived for a very long time if they have a good money balance. In other words, money is the life blood of American small businesses.
Naturally, when times are difficult, inability to get capital to pay daily operating expenses often becomes a source of worry, stress and anxiety and diversion for small business owners.
Sadly, the majority of huge city and town traditional lending institutions have rigid and strict criteria that their clients should fulfill.
Companies have a separate credit rating from business owner. Even if business owner has a high credit history, the business may not have a recognized credit report (specifically if recently developed). For that reason, prospective lenders have to use options with that take business owner’s individual credit into consideration which accepts candidates with less than ideal credit.
Often, physical lending institutions just service businesses doing 20k or more in month-to-month profits. This disqualifies smaller sized companies doing 10k-15k in month-to-month earnings.