It’s no secret that small businesses aren’t particularly fond of large, corporate banks – particularly since the 2008 market crash. The crash of 2008 issued in an era where corporate banks were habitually reprimanded for their outright reluctance to provide fair financing in business lending for both small and medium-sized businesses alike – warnings that went largely unheeded by the banks. The result? Tens of thousands of businesses have been forced to jump ship within the past decade, leaving a trail of devastation in their wake. Yet if recent news is any indicator, it appears as though karma is finally catching up.
In what could only have been motivated by a greed for higher profits and more bonuses, the publicly-owned bank, RBS, was recently exposed for actively working against small businesses. The Scottish bank was caught red-handed making up fees, charging outrageously high interest rates (often in the form of punishment), obtaining both property and equity from failed companies, and to top things off, purloining immense bonuses for themselves at the expense of many unsuspecting businesses.
When the ordeal was brought to light and made public, it naturally made global business firms hesitant to to apply for traditional bank loans. The situation has furthermore caused independent business communities around the globe to seek out innovative alternatives within the business lending spectrum; ultimately, it has caused a substantial shift in the lending community. Businesses of all sizes are distancing themselves from mainstream corporate banks and instead familiarizing themselves with alternative lenders who promote fluid transparency, total responsibility, client security and fair play as non-negotiables within their business practice.
The result of this shift has pushed alternative lenders, such as Gravity Capital, into the front-runner position in the business lending spectrum. Dave Knudson, (aka the “Loan Ranger” and 35-year loan veteran/owner at Gravity Capital) says of the shift:
“Many banks are struggling to be profitable in lieu of excessive bank regulations. Many banks have partnered with merchant loan companies in an attempt to increase profits, a partnership that allows both the bank and the merchant loan company to charge excessively high interest (sometimes over 100% annually) while circumventing usury. Typically, federally chartered banks are sometimes excluded from state usury laws and are known to participate a small percentage of each loan – hence the excessively high interest rates.”
Doesn’t sound quite right, does it? At Gravity Capital, we’ve made it our priority to specialize in closing bridge loans fast – and with full disclosure of all costs, fees and penalties associated with each and every loan. The caliber of our company is built on complete client security and total transparency in all our business transactions.
To learn more about how we can finance your next business project, contact us today or fill out our quick, easy online application.
