I read an article in the Indy Star today which examines the effect of the subprime mortgage collapse on small businesses seeking financing. The writer looks at the two other options readily available to small businesses – leasing and invoice factoring (similar to business cash advance.)
She pinpoints in her article the increasing demand for invoice factoring services and leasing. This is the same cause for the increased demand for credit card fiancing/factoring services, like those offered by us. This is how she sums it up:
“With the subprime mortgage collapse, many large lenders have been tightening their credit standards, with a resulting shrinkage of available credit for riskier projects and small businesses.”
For the complete article.