Start-Ups Will Keep Struggling in 2010

According to an article in today’s Wall Street Journal, entrepreneurs looking to start a new business in 2010 will continue to struggle to find a traditional lending source.

It seems as though the economy has affected every lending option out there…Business owners have seen their personal savings dry up, at the same time that contributions from friends and family seem to be significantly lower. Meanwhile, banks are still incredibly stringent with their lending criteria, angel investors are investing less and SBA-backed loans are shrinking.

The good news is that SBA loans are projected to increase as the government “provides more incentives for financial institutions…to provide financing to small businesses.” However, industry experts predict that it will be incredibly difficult for start-ups to tap into bank financing.

The article failed to draw attention an alternative funding option for start-ups–Accounts receivable factoring. Contrary to their traditional lending partners, invoice funding firms don’t have nearly as many requirements for business owners to qualify for funding. In fact, many factoring firms can work with start-up companies. For example, PRN Funding is comfortable purchasing a healthcare vendor’s very first invoice provided that the debtor is creditworthy.

Click here to learn more about PRN Funding’s factoring services.

Click here to read the entire article: Start-Ups will Keep Struggling in 2010.