Ever since the recession, banks have packed their bags and left the small business lending market, leaving a considerable void. The demand for small business finance has not slackened, however.
Direct Capital has been keenly aware of this need for most of our 20 years in business, and it’s as large as it has ever been. Small businesses are eying financing programs that help them solve their cash flow woes or looking for equipment financing to help them get their hands on the piece of equipment that will make growth easier. With the banks missing in action, it falls on lenders like Direct Capital to fill the vacuum.
While I could spend a long time telling you about how we’ve done that, I’m more interested in explaining why I believe this need will not die down in 2013. Here’s three reasons:
- The economy is getting better. It’s not to where we would all like it to be yet, but as small businesses find a little optimism, they’re going to continue to want money to forge ahead.
- The need in 2012 was huge, particularly in states indicated by our heat map, and it has been strong again in Q1. Given that many small businesses see their biggest numbers later in the year, it’s reasonable to expect that demand will track with that growth.
- Did we mention the banks aren’t lending? Demand will continue to outstrip supply as long as that is the case.
Don’t expect the need to shrink in 2013. If you’re a small business looking to financing, be sure to check out what Direct Capital can offer!