PORTSMOUTH, N.H. (May 30, 2013) - Increased demand among small businesses for alternative forms of financing is being led by restaurants, according to a recently released infographic from Direct Capital a leading nationwide provider of equipment leasing, business loans and working capital. Other industries high in demand include automotive repair shops, business service companies, dentists, and plumbing companies, according to the company.
Alternative financing options have become increasingly important to small businesses because many traditional sources, including bank financing, have dried up. To overcome that void, many small businesses are now turning to non-bank lenders who look at the business’ credit card receivables, bank statements, and other data to make loan decisions.
“Before the financial crisis, small business owners had a wide variety of finance options to help them manage their cash flow,” said Stephen Lankler, Senior Vice President of Direct Capital. “We would often see a business owner using a low interest, home equity line of credit to manage business expenses. But those options have dried up and they have been replaced by these newer forms of non-bank finance options.”
According to Lankler, industries hit hardest by the credit crunch were the earliest adopters of these alternative forms of financing. Direct Capital’s infographic also shows that small business owners are predominantly using alternative financing to help them manage costs related to inventory and supplies.
To view the infographic, visit this link.
About Direct Capital
Established in 1993, Direct Capital (www.directcapital.com) is a financial technology company that delivers financial solutions for small & medium sized businesses, franchisors, and equipment and technology sellers. The company is headquartered in Portsmouth, N.H. and operates offices in New York, California, and Georgia. You can follow Direct Capital on Twitter at http://twitter.com/DirectCapital or subscribe to its PointBlank blog at http://blog.directcapital.com/.