Businesses try to Net financial assistance
It’s a universal truth that small-business owners need money to grow. The problem is that most don’t qualify for bank loans with an 8% interest rate, and even more don’t want to do business with predatory lenders who charge 40% and remind them of Tony Soprano.
Since the credit crunch of 2007, some 400 banks have opted out of the federal government’s guaranteed small-business-loan program, making it tougher than ever for entrepreneurs to get attractive loans.
But now, thanks to the Internet and the power of automation, a new wave of online financiers has emerged to fill the gap.
The market is real, and the potential for growth is huge, at least according to James Robinson III, former CEO of American Express. He is leading a consortium of venture capitalists backing On Deck Capital, a financing network designed to provide loans to small businesses that can’t pass muster with banks.
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