Since the early 2000’s many banks have been hit hard. Some community banks didn’t survive the financial travails of the last decade and those that did survive can’t afford to offer business startup loans like they used to. Business Startup loans may not be dead, but they are fighting for their lives. And it may be non-bank financial institutions that will throw them a lifeline.
A Vital Community Role
Community banks have played an important role for local businesses in the Finger Lakes. Their dedication to invest in Main Street USA offered new and existing businesses loan products that kept small businesses thriving. But as the lenders started to suffer, they were no longer able to pump money into the community, so small business has suffered as well.
This is especially true for startups. The credit crunch that started in the mid 2000’s made obtaining a business startup loan difficult. Regulations and restrictions on small business credit forced entrepreneurs to search for other ways to finance new business launches.
Non-bank Financial Institutions
Angel investors, crowd funding and non-bank online financial services have saved small business startups in the Finger Lakes region and helped keep the entrepreneurial spirit alive and well. Their business startup loans and other financial products have forced traditional banks to look at offering business loans again. Banks are revamping their product offerings, customer service approaches and sales approaches as they try once more to support the local business community.
Healthy Competition Means Businesses Win
As multiple financial services become available, startup companies have more variety when it comes to loan products. Business startup loans in Ithaca are still tied to an individual’s credit score, but even those with little credit or poor credit can obtain financing.
If you are looking for a business startup loan in Syracuse, you can find financing. By understanding the types of loans available, knowing your credit score, and having a solid business plan you may be able to finance your new business.