What Type of Lender is Right for My Business?

by Crestmark 10. July 2014 05:54

When business owners or executives first realize the need for working capital, it can be difficult to know where to start. People often ask, “Should I call my local bank? What about non-traditional lenders? What’s the difference between the two?” We hear this all the time, and wanted to provide a resource to help! 

We recently released an Infographic titled “What Type of Lender is Right for My Business?” This provides a quick and easy reference piece for prospective borrowers to determine whether they’d be better suited pursuing a traditional bank line of credit, or to look into alternative financing. Each lending option has unique characteristics, and this infographic helps clarify how different business situations are best suited for certain lending options. 

The infographic follows a flow-chart format, and leads users through a series of yes / no choices about their business. Key points that determine the right fit include: 

- Does your business have three or more years of positive business history?

- Do you have limited or negative equity?

- Do you have limited or inconsistent profitability?

- Do your assets exceed your liabilities?

- Does your business have positive trends?

- Are there opportunities for growth?

By answering each of these questions, it’s easy to see whether your business may qualify for traditional or non-traditional lending. We are excited about this release, and hope that many businesses find this useful! 

              is alternate lending right for my business

Are you in the market for a business loan? If so, ask yourself the questions on this infographic and then give us a call to discuss! We’d love to help walk you through the process of figuring out what lending option would be best for you and your business. 

 

 

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Grad Students Take the Lion's Share of Rising Student Loan Debt

by Crestmark 2. July 2014 09:42

Students getting college degrees are borrowing more money to complete their educations than they have in the past. Student loans have topped $1 trillion. A study recently released by the New America Foundation shows that student loan debt is outpacing all other types of loans except for residential mortgages. Students seeking advanced degrees comprise only 17 percent of student loan borrowers, but they're getting the lion's share of the money.

  


The study revealed that grad students borrowed an average of $57,600 in 2012, as compared to just $40,209 in 2004. That's an increase of 43 percent in just eight years. Students are hoping that advanced degrees will give them better employment opportunities in a struggling economy.

After completing an undergraduate program, many students are finding it difficult to land a job. The philosophy is that going back to school to get a higher degree will make them more competitive in the workforce. A bachelor's degree is no longer enough for some careers. The New America Foundation research showed that some students with master's degrees weren't necessarily getting higher salaries, just hoping to get the edge over the competition. How much they borrowed was directly related to their field of interest.

For example, students borrowing money for Master of Arts degrees dropped $58,500 in 2012, for an average of $20,500 more per student. On the other hand, the average student financing a business administration master's program in 2012 borrowed $42,000, only $600 more than their counterpart in 2004.

According to non-profit American Student Assistance, of the 20 million students attending college every year, about 12 million borrow money to help cover their expenses. The consumer Finance Protection Bureau reports that of the more than $1 trillion in student loans, $150 billion comes from private lenders, and the other $864 billion is connected to federal funding.

 

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