Having trouble getting a bank loan for your small business? So are many other small companies, especially those in economically disadvantaged areas, according to a report released Tuesday. That lack of traditional bank financing has led to a proliferation of online small business lenders. But experts warn: be careful. Small business loans in 2014 were down nearly 60% from their 2007 peak, a, according to “Patterns of Disparity, ” a report conducted by the Woodstock Institute in partnership with the Main Street Alliance, California Reinvestment Coalition, and People’s Action Institute. “Since the Great Recession, mainstream financial institutions have been reluctant to make small loans to businesses, and so businesses have increasingly been resorting to alternative, non-bank financial technology (finch) lenders for needed capital, ” the report said. An "analysis of loan terms and satisfaction surveys of business owners suggest that high-interest rates, onerous term,s and relatively poor customer service are unfortunately common among such providers. ”
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