Lamenting the Online Small Business Lending Bubble

Have you ever lied awake in the middle of the night as an entrepreneur and wondered…. 

Am I missing the boat and doing something wrong?  That’s how I have felt lately as I’ve watched the emergence of the online small-business financing space.

It seems every other week I wake up to another announcement about a company in the small-business financing space who has raised a lot of money from venture capitalists at a really high valuation.  There is a bubble happening in the space and anybody who is anybody in the investment community wants a piece of it.

Every successful company has a core thesis to it–something that they are trying to do–or prove.  In my space, many claim they’re bringing speed to the loan process.  Others promise technology.  Sometimes I think they’re missing the core message.

When we serve an entrepreneur or business owner — we’re being entrusted with their dream — and to help advise them.  In many cases their life savings are on the line, and many people’s jobs.  Our belief is when the stakes are high — they deserve a conversation with an expert — who can try to help them figure out the best path for their business.

There can be many outcomes from this conversation.  Sometimes the answer might be that they should not try to borrow any money at all.  Or other times they need to clean up their financials or get their taxes filed before looking for a loan. Other times we need to piece several loans together over a path to help them get to where they need to be.  Speed is often not the answer —  listening and patience are.

I know that MultiFunding will be here for many decades helping to serve our clients.  Our new tag-line “Business Loan Advisors” might not have the sex appeal that makes venture capitalists druel — but it’s who we are and what we do; as for me, I am done with my sleepless nights.

Let’s Get Real About Small-Business This Campaign Season

Last week, we witnessed the opening shot in the small-business game of the presidential political season. Hillary Clinton took to LinkedIn to promote herself as the small-business candidate. She provided four very general ideas: cut red tape, increase access to capital, provide tax relief to small-business and provide access to new markets.

This will be the first of many positions taken by both sides of the aisle – to try and win the hearts and minds of Main Street America.

My hope is that we can hold the candidates feet to the fire – to provide concrete and specific ideas about improving access to capital for small-business owners and entrepreneurs.

Here are Three Places to Start:

1. If you can’t measure it – you can’t understand it. There are dozens of definitions running around Washington about what constitutes a small-business. With a lack of definition, and a lack of reporting requirements for alternative lenders, it’s about impossible to really understand what’s happening in the marketplace. For once and for all, we need a definition of what is a small-business and hold all lenders accountable for reporting their activities.

2. If we like it or not – we’re running hundreds of banks out of garages. Since the great recession, we’ve soon the emergence of hundreds of alternative lenders, offering business owners and entrepreneurs access to quick capital. It’s the wild-wild west of alternative lending. And while it’s certainly helped some businesses, it’s hurt plenty of others. Let’s get a handle on this industry – once and for all.

3. There is nothing express about SBA Express loans. Politicians love to talk about “express loans” – but they still take weeks if not months to get, and suck up dozens of hours from time starved business owners. Silly requirements like needing a ten year lease at your place of business blow these loans up time and time again. If we say Express, let’s mean it.

The Best Small Business Banks Around Riverside, CA

MultiFunding is proud to announce the 2014, top 20 banks in Riverside, California for lending to small businesses. In early November 2014 MultiFunding partnered with Entrepreneur Media to launch an innovative and state of the art interactive search tool, like Zillow, that makes it possible for entrepreneurs to instantly identify and evaluate local banks by their track records for lending to small businesses.

The Bank Search tool calculates the total dollar value of loans made by a bank to small businesses. Small business loans are defined as loans between $100,000 and $1,000,000, then divided by the total number of branches owned by the bank. In addition to a list of local results based on this equation, entrepreneurs can see an estimate of small‐business loan balances held at each branch.

“One of the biggest challenges that small businesses face is access to capital,” says Ami Kassar, CEO of MultiFunding. “Our grading system and website help small business owners find local banks that are friends of small business.”

 

The best small business banks around Riverside, California are:

Secure Bank Of California
California United Bank
Bbcn Bank
The Bank Of Hemet
Community Bank
Wilshire Bank
Pacific Premier Bank
 Cathay Bank
Pacific Mercantile Bank
Chino Commercial Bank
Citizens Business Bank
Mission Bank
East West Bank
Alta Pacific Bank
California Bank & Trust
American Continental Bank
First Mountain Bank
Bank Of Southern California, N.A.
Pacific Western Bank
City National Bank

The Best Small Business Banks In San Diego

MultiFunding is proud to announce the 2014, top 20 banks in San Diego for lending to small businesses. In early November 2014 MultiFunding partnered with Entrepreneur Media to launch an innovative and state of the art interactive search tool, like Zillow, that makes it possible for entrepreneurs to instantly identify and evaluate local banks by their track records for lending to small businesses.

The Bank Search tool calculates the total dollar value of loans made by a bank to small businesses. Small business loans are defined as loans between $100,000 and $1,000,000, then divided by the total number of branches owned by the bank. In addition to a list of local results based on this equation, entrepreneurs can see an estimate of small‐business loan balances held at each branch.

“One of the biggest challenges that small businesses face is access to capital,” says Ami Kassar, CEO of MultiFunding. “Our grading system and website help small business owners find local banks that are friends of small business.”

 

The best small business banks around San Diego are:

Bofi Federal  Bank
Vibra Bank
Seacoast Commerce Bank
Bbcn Bank
Western Alliance Bank
Pacific Commerce Bank
Gbc International Bank
San Diego Private Bank
Grand Point Bank
Commerce West bank
Pacific Premier Bank
Cathay Bank
Pacific Mercantile Bank
Citizens Business Bank
East West Bank
Hanmi Bank
Alta Pacific Bank
California Bank & Trust
California Bank & Trust
Bank Of Southern California, N.A.

 

The Best Small Business Banks In Phoenix

MultiFunding is proud to announce the 2014, top 20 banks in Phoenix for lending to small businesses. In early November 2014 MultiFunding partnered with Entrepreneur Media to launch an innovative and state of the art interactive search tool, like Zillow, that makes it possible for entrepreneurs to instantly identify and evaluate local banks by their track records for lending to small businesses.

The Bank Search tool calculates the total dollar value of loans made by a bank to small businesses. Small business loans are defined as loans between $100,000 and $1,000,000, then divided by the total number of branches owned by the bank. In addition to a list of local results based on this equation, entrepreneurs can see an estimate of small‐business loan balances held at each branch.

“One of the biggest challenges that small businesses face is access to capital,” says Ami Kassar, CEO of MultiFunding. “Our grading system and website help small business owners find local banks that are friends of small business.”

 

The best small business banks around Phoenix are:

Seacoast Commerce Bank
Enterprise Bank & Trust
Stearns Bank National Association
Western State Bank
Ks Statebank
Western State Bank
Alerus Financial, National Association
Grandpoint Bank
Cobiz Bank
Sunwest Bank
The Foothills Bank
Unison Bank
First International Bank & Trust
Commerce Bank of Arizona
National Bank Of Arizona
Arizona Bank & Trust
Bank 34
UMB Bank
Great Western Bank
First-Citizens Bank & Trust Company

The Best Small Business Banks In Miami

MultiFunding is proud to announce the 2014, top 20 banks in Miami for lending to small businesses. In early November 2014 MultiFunding partnered with Entrepreneur Media to launch an innovative and state of the art interactive search tool, like Zillow, that makes it possible for entrepreneurs to instantly identify and evaluate local banks by their track records for lending to small businesses.

The Bank Search tool calculates the total dollar value of loans made by a bank to small businesses. Small business loans are defined as loans between $100,000 and $1,000,000,then divided by the total number of branches owned by the bank. In addition to a list of local results based on this equation, entrepreneurs can see an estimate of small‐business loan balances held at each branch.

“One of the biggest challenges that small businesses face is access to capital,” says Ami Kassar, CEO of MultiFunding. “Our grading system and website help small business owners find local banks that are friends of small business.”

 

The best small business banks around Miami are:

American National Bank
Everbank
Marquis Bank
Amerasia Bank
Flagler Bank
Inter Audi Bank
Paradise Bank
Bank Leumi USA
Biscayne Bank
Mercantil Commerce Bank
City Bank Of Florida
Ocean Bank
Seaside National Bank
Eastern National Bank
Totalbank
Cnlbank
Centerstate Bank Of Florida, National Association
Grand Bank & Trust Of Florida
Regent Bank
Seacoast National Bank

The Best Small Business Banks In Detroit

MultiFunding is proud to announce the 2014, top 20 banks in Detroit for lending to small businesses. In early November 2014 MultiFunding partnered with Entrepreneur Media to launch an innovative and state of the art interactive search tool, like Zillow, that makes it possible for entrepreneurs to instantly identify and evaluate local banks by their track records for lending to small businesses.

The Bank Search tool calculates the total dollar value of loans made by a bank to small businesses. Small business loans are defined as loans between $100,000 and $1,000,000, then divided by the total number of branches owned by the bank. In addition to a list of local results based on this equation, entrepreneurs can see an estimate of small‐business loan balances held at each branch.

“One of the biggest challenges that small businesses face is access to capital,” says Ami Kassar, CEO of MultiFunding. “Our grading system and website help small business owners find local banks that are friends of small business.”

The best small business banks around Detroit are:

Crestmark Bank
Mainstreet Bank
Best Bank of Birmingham
Best Bank of Ann Arbor
Northstar Bank
Talmer West Bank
Clarkston state Bank
The Private Bank and Trust company
First Independence Bank
Hantz Bank
First State Bank
Level One Bank
Lapeer County Bank
The State Bank
Urban Partnership
Monroe Bank & Trust
Mbank
First National Bank Of Howell
The Northern Trust Company
Tri-County Bank