Has business been booming for you? Well, you might not be the only one experiencing expansion and great profits this quarter. According to a new study done by PYMNTS, mall and retail space vacancies have greatly decreased this quarter, and that means that businesses are now back on track. And, they are saying that there’s a couple of great reasons why so many companies are now working on expansion.
Though the uptick in the economy and an increased interest in entrepreneurialism is considered to be a major reason why companies are booming, there’s another reason most people wouldn’t guess. Because of the role that merchant cash advances played in the Great Recession’s recovery, companies are blossoming once more. Here’s why some economists credit alt lenders with the current expansions and openings going on now.
- Alt lenders were the ones who said yes when banks said no. And it was not a time for banks to say no. The recession was worsened by the fact that traditional lenders just weren’t lending. Even established businesses couldn’t get loans they once were able to. As a result, alt lenders were the ones who stepped in and helped companies weather the financial storm.
- Moreover, everyone’s credit was shot during the Recession. The only people who were able to get good credit were the ones who had very stable jobs or who manned major corporations. Because credit matters so much to banks, they still struggle with getting loans today. Meanwhile, alt lenders didn’t care about peoples’ credit scores, which meant that they were able to be more lax with the lending rules and offer money to people who really deserved it.
- Moreover, the alternative lending industry boomed during the Recession, which led to more jobs. This has led many people to enjoy a stable standard of living and also given them the opportunity to start their own businesses. Many of these businesses are now starting to soar in profits.
- Alt lending also was great when it came to actually being flexible enough to keep companies afloat during a Recession. Since you only have to pay based on what you earn, companies weren’t heavily pressed to come up with money for monthly bills. Cash advances were more affordable and flexible.
- Now that businesses have benefited from the perks of alt lending, banks are starting to realize they are no longer the monopoly they once were. And, that means that they are now working on being better about accepting people once more, and they’re working on lowering rates.
If you want to get a merchant cash advance, or if you wanted a loan but were turned down by banks, it’s time to give CPS a call.