Prolonged higher interest rates and economic turmoil mean more businesses find themselves looking for loans. And with many unable to get loans at traditional banks due to bad credit or other obstacles, they might be tempted to accept a loan that could end up burying their business with sky-high interest rates, excessive fees or more.
Continued economic uncertainty will continue to affect lending. Higher credit standards combined with increased fees and sustained high interest rates, can lead to capital that is not affordable to many business owners. It’s also a perfect storm for increased predatory lending activity.
LiftFund is a leader in making affordable funding accessible to people who don’t qualify for traditional lending. Through responsible risk taking, we’re able to offer a wider variety of options to small business owners looking for help. When businesses responsibly repay their loan they have greater financial standing and a stronger business. So, we often see an uptick in our customer base during uncertain times because we’re a safe space for accessing capital.
LiftFund serves as a resource to help business owners weighing loan options decipher if they are working with a predatory lender. Small-business owners desperate for capital are an easy target, but there are a number of ways to spot those potential bad actors.
Read more on how to spot predatory lending, and learn some of the Dos and Don’ts from LiftFund CEO Amy Hereford in her interview with The Business Journal.
Ultimately, small business owners need to be aware that there are a lot of different avenues to access funding and not rush to make choices that can later create challenges and even end up forcing the business to close. The key is finding safe and affordable access to funding.
Take the quiz to find out if you’re ready.
A nonprofit lender’s bottom line improves only when people graduate from needing our help to being able to work with traditional financial institutions. We support small businesses through a combination of business support and low-interest or no-interest lending.
