For expansion or for managing cash flow, businesses need need a reliable channel for debt financing. Unfortunately local banks, and even national or international financial institutions have been keeping cash lending on a short leash. Even as they lend, the decision making time often makes the process infeasible for small to midsize companies looking to grow or augment cash flow.
It is no secret that the financial crash of 2008/09 made lenders and borrowers more cautious. Before seeking loans, businesses have cut expenses to the bone, even to the point of jeopardizing their ability to provide services expected by their customer base. Banks have turned their backs of businesses that were reliable customers prior to the crash as a result of tightening requirements and ensuring regulatory compliance.
There are alternatives to the local or national banks. Online lenders and non-traditional sources for cash are stepping in where banks have backed away.
One. https://www.ondeck.com/, provides loans exclusively to small business. So far, they’ve provided about $6B in loans since 2007, and have been a lifesaver for so many.
For more information on financing for a small to medium size businesses, take a look at this piece from PBS. http://www.pbs.org/newshour/bb/small-businesses-increasingly-turn-online-lenders-banks-bail/