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During the Great Recession, the banks accelerated their departure from lending to Main Street businesses. True, the share of bank loans going to small businesses has been declining for years, as banks have focused on lending to large businesses. (The FFEIC reports that the share of loans to small businesses peaked in 1999 at 60 percent of loans.) The decline in bank lending to small businesses during the slowdown, however, was larger than the corresponding drop in bank lending to large companies. In 2007, 38 percent of new loans went to small businesses, but by 2009, that percentage had shrunk to 26 percent. And in 2007, 41 percent of new lending dollars went to small businesses, but by 2009, that share had fallen to 35 percent. Banks may be more inclined to approve loan applications of someone with a steady paycheck and job, instead of someone who recently quit his or her job and whose entrepreneurial future is still uncertain. The ultimate solution to this problem is unsecured business loans. People who are newly entering in a dealing field can choose these credits, but it is also availed to expand a trade that already exists.

Small business loans are basically designed to meet all the financial needs of the business. It can be either used to expand the business, buying machinery or equipments or to start a new business. Unsecured small business loans are not really a loan in the truest meaning of the word. The amount you borrowed is a form of a cash advance which will be paid back through a merchant account. In most cases, you’ll be required to produce a credit card as a mode of repayment. You also need to pay a fixed amount every month and have to stay in business until your loan is paid.

Unfortunately, not every lender offers these kinds of loans. Do not take that as an obstacle that you cannot overcome but it must motivate you to look for lenders who are willing to offer these loans. It has become rather easy now to compare and contrast rates and find the loan that best suits ones needs. So, if you’re interested to apply for small business loan, you can check out the internet for unsecured loan companies as MBC. MBC with its online application process makes it rather easy to compare and search for the best terms that will satisfy you and is just a click away.