That is why when I read articles like, “Small Business Credit Cards Flourish as Loans Disappear – As Traditional Loans Dry Up, Banks are Funneling More of their Small Business Lending Through Credit Cards” I think, WOW… There is truly no better timing for IOU Financial. The Small Business Administration (SBA) has significantly reduced the number of loans it has backed over the past few years. According to the Small Business Administration, the SBA has backed less than 45% of the total 7(a) loans this year* compared to the number backed in 2007 (*through 9/30/09).
With data like that, it is no wonder that most small businesses are leaning on credit cards to help fund their business. Enter IOU Financial. Small businesses need access to capital, and they usually need it fast. IOU Financial is positioned between SBA-type bank loans and Merchant Cash Advances (MCA), and that is a GREAT place to be positioned. Funding is much faster than typical bank loans and rates are much lower than typical MCA loans. Although IOU Financial can’t fund every small business (at least, not yet), the company has set it sights initially on businesses with daily cash transactions, and will expand from there.
Accessing capital on IOU Financial is easy. Small business owners simply log into www.ioufinancial.com, register, and complete an online loan application. The entire process takes minutes, and most loans are funded within 2 business days. Let’s revolutionize small business lending, and let’s do it together!