Bank Lending Still Difficult

Gross sales loans for business, and equipment based types of Alternative financing continue to increase in popularity as obtaining business loans from banks continues to prove difficult.

Even consumer loans backed by Real Estate remain evasive as FHA loans still account for a very high percentage of home loans approved. With decline rates continuing to be up to 95% for business loan requests at major banking institutions, the dollar value of portfolios in alternative financing options will steadily increase.

In general, traditional banks have always been the most conservative of all lending institutions, and not much has changed. There are significant abberations to this, as evidenced by the housing market crash in 2008. Banks got caught up in the hot market of the previous decade and abandoned many of their conservative requirements.