Small Business Survey Shows Why Companies Don’t Want to Take on Debt

We found an article in Forbes Magazine that discusses the reasons why many small businesses don’t use debt to finance startup costs or growth.  The information that was gathered was interesting for a number of reasons:

            “The top reason they didn’t seek loans? More than 60% who chose alternative means of funding simply didn’t want to take on the debt, and a quarter of respondents didn’t think they’d get approved. Another 12% said the cost of credit was too high, and 9% said the loan process was too time-consuming.”

While we would tend to agree that debt financing can sometimes be a drain on a small businesses resources, if taken responsibly an infusion of a new source of funding can do wonders for a business to grow and expand as well as lend piece of mind to the operators.  Further, most businesses can and do get approved by alternative lenders if they are not quite ready for a bank loan.  Though the cost will be higher at an alternative lender like Payplant than a traditional bank, we simply do not charge companies a fee that they cannot afford.  As a fully automated online lender, our underwriting process is streamlined and efficient saving borrowers the time and effort that most other credit applications require.