Financial institutions are mindfully reducing lending in an effort to keep more cash on hand as a safeguard in the event of bank runs.
#Factoring invoicing full
In the wake of the recent Silicon Valley Bank and Signature Bank collapses, industry specialists now say a credit crunch is in full swing. Rising interest rates and a slowing economy further slowed lending as banks began to focus even more on quality and reduced risk over quantity, Reuters reports. Even strong potential borrowers may be turned away in the best of times. Harvard researchers say this because banks typically have the same overhead administering a small loan as they do for a larger loan, and larger loans deliver greater profit. Small businesses often have a difficult time qualifying for traditional funding. Additional coverage of the topic can be found in“When to Consider an Invoice Factoring Service Instead of a Bank,” which is now live on.
HOUSTON, TEXAS, UNITED STATES OF AMERICA, May 23, 2023/ / - Leading invoice funding company Charter Capital says small businesses are exploring alternative funding sources as banks tighten lending requirements. Businesses are leveraging factoring to shore up their own finances and prepare for banking issues caused by the uncertain economy too.” - Joel Rosenthal More small businesses are looking to alternative funding sources as banks limit funding in preparation for a recession. When to Consider an Invoice Factoring Service Instead of a Bank
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