Small Business Funding Sources

Posted by Mike Smith :: August 7, 2007 @ 8:21 am

The only thing that seems to be growing faster than the number of small business springing up in this country is their increasing reliance on credit cards as a source of funding. According to a recent article in The Wall Street Journal, small business owners are increasingly turning to credit cards for business expenses, thinking that they have no other choice. Just as consumers can quickly get overwhelmed with credit card debts, businesses are susceptible as well.

Why small business owners turn to credit cards:

• It’s often faster and simpler to sign up for a card than to apply for a bank loan
• The small business doesn’t have the financial history to qualify for a business loan
• Perception that credit cards are their only option

The same solution that has been helping consumers consolidate their high interest credit card debt, fund new purchases, and take control of their financial futures is available to help small business owners as well: a P2P loan from Lending Club.

We all know how the low rates at Lending Club can save you considerable amounts of money compared to credit cards by reducing your interest payments. Realize that the savings don’t discriminate personal debts from business debts. Small business owners can use this to their advantage by consolidating business debts and acquiring future funding with a loan from Lending Club.

Lending Club bridges the gap, which at times may seem insurmountable to business owners, between affordable credit and attainable credit. Small businesses want the ease of application and convenience of a credit card with the affordability of a bank loan. Smart small business owners who are savvy enough to avoid the high cost of credit cards should turn to the perfect compromise: an affordable and attainable P2P loan from Lending Club.