Small Business Lending Still Depressed Five Years After the Collapse of Lehman Brothers, According to New Survey Despite signs of economic recovery, Merchant Cash and Capital’s survey of small business reveals continued struggles to secure financing to run, grow businesses Business Wire NEW YORK -- September 11, 2013 As the five-year anniversary of Lehman Brothers approaches, small businesses continue to struggle to secure the financing they need to run and grow their businesses, according to a recent survey by Merchant Cash and Capital (MCC), a leading business cash advance and financing company. According to the survey of 322 small business merchants, small business lending continues to be down, with traditional bank loan issuance still depressed. In fact, only 6% of respondents found it very difficult to get financing before the collapse of Lehman Brothers in September 2008, but that number grew significantly in the ensuing years, with half of the respondents saying it was somewhat or very difficult to obtain financing between 2008-2012. Today, nearly one in two (45%) still believe this to be true – and 86% said they expect this difficulty to remain over the next 12 months. “Even though the economy is improving and banks claim to be financing more, there really seems to be a disconnect between what lenders are saying and small businesses are feeling,” said MCC CEO Stephen Sheinbaum. “Five years after the official start of the financial crisis, many small businesses, especially those with annual revenues under $1 million, continue to struggle to secure approval on the traditional loans they need to run their businesses.” Nearly seven in 10 respondents (69%) believe that traditional financing has not returned to 2007 levels. As a result, 40% of business owners surveyed said they have looked or used alternative ways (besides bank loans) to finance their business, which includes the risky use of credit cards (15%) or asking friends and family for funds (9%). And more than half of respondents (54%) said they don’t plan to hire in 2014. “Without access to capital, small businesses will continue struggling to grow and hire, which is critically important to economic recovery in the U.S.,” Sheinbaum added. “These findings shed important light on the struggles of many in the small business community, and prove why secure alternative financing options are important for their future success.” About the survey Merchant Cash and Capital conducted the online survey of 322 small business merchants (revenues under $10 million annually) in August 2013. About Merchant Cash and Capital Since 2005, Merchant Cash and Capital, LLC, has been one of the nation's business cash advance funding leaders. MCC has provided more than $575 million in financing to over 12,500 distinct customers and a total of over 27,000 advances. For more information about MCC and its innovative small business-focused funding programs, please visit us at www.merchantcashandcapital.com or call 1-866-792-9366. Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130911006053/en/ Multimedia Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50707176&lang=en Contact: Press Peppercomm Danielle Lundquist, 212-931-6157 firstname.lastname@example.org
Small Business Lending Still Depressed Five Years After the Collapse of Lehman Brothers, According to New Survey
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