America's small and medium sized businesses have been the backbone for our past economic recoveries. However, banks are currently under increased federal regulation and scrutiny and as a result they are becoming more hesitant to lend funds to these businesses. If businesses cannot get the funds they need to grow and expand it will only hamper the current economic recovery.
Community banks are still offering loans but businesses have to jump through a lot more hoops to get them. According to a recent Wall Street Journal article, community banks are requiring much more detailed infomation about a business and its operations before it will be considered for financing. In addition to standard financial information, a borrower is now required to report other information . . . for instance, if one of the (borrowers) customers is in financial trouble. The end result is that many business owners are unable to qualify for the loans they need.
Leasing companies can help to fill the void. Business owners can turn to leasing companies to secure the funds they need to grow their business. Along with a simpler application process, leasing provides the financial flexibility to free up cash and credit lines as well as gain important tax advantages.
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