Archive for the ‘E-Commerce’ Category
There are at least two prominent motivations for small business owners seeking small business loans without banks. One is looking backward at how banks have performed and deciding that they deserve better. In particular small business owners can point to business financing being reduced and eliminated by banks even though they were bailed out by taxpayers so that this kind of financial activity could resume at normal levels.
For a second example, banks are failing at a rate that alarms most observers so logic dictates that small businesses should not book passage on a ship that is about to sink. Meanwhile, routine small business loans are not available from the remaining banks on a reliable basis. Small business owners have already realized that they must find alternative business financing when their bank is not up to the task.The ability to obtain commercial loans without bank involvement can help small businesses to prosper both with and without banks. Thinking outside the bank has become a battle cry for some lenders in their efforts to dramatize a new bank-less approach to business financing.
Wanting to find commercial loans and working capital loans without involving banks must certainly be an outgrowth of how unpopular banks have become in the current distressed economy. Thomas Jefferson is credited as the source of an early observation that seems to be more relevant than ever today (Banking establishments are more dangerous than standing armies), especially when viewed in combination with reeling economic conditions. The dramatic bank changes seen during the past ten years or so have simply served as a renewed inspiration to forego banker relationships whenever possible.
Banks have changed just as significantly as Chrysler and General Motors, although bankruptcy was not an option for the banks due to legal and governmental restrictions. Despite fond memories of how banks operated in an earlier time, they have rapidly progressed to a mechanical and cold operation that is not likely to be appealing for either individual or business customers. The earlier image of giving toasters away has been replaced by credit card fees and foreclosures.