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Bankcorp , Citigroup , KeyCorp and others are committed to increasing their lending by billions of dollars in a few years. The news comes on the back of growing signs that the economy is back on track and the small business credit crisis is a thing of the past. Banks increasing small-business lending is a cause for celebration, but not every small business owner is dancing with joy.For many, such loans still remain out of reach, and for good reason. But increased small-business lending is good, but it’s not a panacea. In this scenario, a case for alternative financing seems like a stretch at first glance. Dig a little deeper and it starts making sense. So why isn’t small-business lending enough for many businesses? 1. Stringent Regulation New regulations introduced to eliminate bad lending have boosted lending standards, but lowered the fraction of creditworthy borrowers. Small businesses with little or no credit history have no chance of getting a loan. In such cases, alternative financing options like crowdfunding and business invoice factoring can come to the rescue.
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