Financing from credit unions and small, regional banks are on the rise, according to one firm.
Biz2Credit, a New York firm that connects business borrowers to financial institutions, arranged a record $50 million in loans and refinancing in September. That figure brings the total amount arranged between lenders and small businesses to more than $500 million since 2007.
Still, “despite reports to the contrary, there is no shortage of small companies looking for funding, yet it is by no means easy to secure capital,” said Rohit Arora, CEO of Biz2Credit.
Arora said as credit markets continue to remain tight, deals are increasingly being done with alternative lenders, credit unions and small banks rather than with big banks.
“Large lenders have stricter lending criteria to which they must adhere, while local and regional banks and nonbank lenders tend to be much more flexible,” Arora said.
Biz2Credit said its network consists of six million users and more than 400 lenders.