The Leasing GroupThe Leasing Group

by The Leasing Group

Picture of A Biggy Bank staying afloat.

The 2008 big bank scandal and ensuing financial crisis brought on a widespread lending freeze that cut off many entrepreneurs from business lease financing. Small to medium companies could get only partial funding for equipment loans or none at all.

Community banks that had done nothing wrong were penalized by the big banks’ mistakes. And all financial institutions became reluctant to lend money for fear of penalties and lawsuits. The effect this lending freeze had on small to medium-size businesses was devastating.

The Huffington Post reported in August 2012 that this consequence of the economic downturn trampled the dreams of many entrepreneurs. More than 170,000 U.S. small businesses closed up shop between 2008 and 2010. A myriad others couldn’t get the financing to get started at all.

Large and small banks alike have been hammered by regulatory and compliance laws during the past five years. The mountain of paperwork required to fund a loan has many bankers’ hands tied.

Fortunately, banking industry leaders are starting to recognize that they can’t make money if they aren’t making loans. As of 2012, borrowers are winning again as banks find ways to loan money in spite excessive regulation.

According to a 2012 report by Thomson Reuters, small business financing is on the rise for the first time since 2008. The demand for business loans is increasing in tandem with increasing sales, and businesses are gaining back some footing on their credit scores.

More freedom to lend in the banking industry means more freedom to grow your business. Now is a good time to consider applying for equipment lease financing. Contact The Leasing Group at (502) 547-2773 for more information about how we can help you.

The Leasing Group
About The Leasing Group