Has Your Small Business Lender Stopped Funding? Here’s What to Do
In
March
2024,
two
major
small
business
lenders,
Funding
Circle
and
Amazon,
announced
they
would
scale
back
their
business
lending
programs.
These
programs
provided
financing
to
small
and
medium-sized
businesses
and
were
a
vital
funding
source
for
many
small
business
owners.
Just
because
these
lenders
closed
some
of
their
funding
programs
doesn’t
mean
your
business
has
to
go
without
vital
resources.
If
you’re
a
small
business
owner
looking
for
funding,
keep
reading
to
learn
more
about
what
these
recent
announcements
mean,
what
to
do
if
your
funding
provider
closes,
and
how
to
find
alternative
funding
opportunities.
In
this
article:
Which
small
business
lenders
have
recently
closed?
Neither
Funding
Circle
nor
Amazon
will
close
their
lending
programs
entirely,
but
they
will
stop
funding
new
loans
for
many
new
and
existing
customers.
Here’s
what
to
know
about
the
status
of
each
company:
Funding
Circle
to
Exit
US
Market
Online
lender
Funding
Circle
announced
it
would
sell
its
US
business
to
focus
on
its
UK
branch.
The
company
acted
as
both
a
lender
and
a
marketplace
to
provide
business
loans
and
connect
customers
to
merchant
cash
advance
companies.
Funding
Circle’s
US-based
business
had
reported
hard
but
expected
losses
in
2023,
leading
to
the
decision
to
sell.
A
buyer
has
not
been
announced
at
the
time
of
this
article’s
publication.
Amazon
Small
Business
Lending
Shutters
In-House
Operation
As
of
March
6,
2024,
Amazon
has
closed
its
in-house
term
business
loan
program.
The
program
provided
small
and
medium-sized
businesses
with
term
loans
up
to
$250,000
and
merchant
cash
advances
up
to
$10
million.
Although
Amazon
Lending
will
no
longer
offer
these
services
in-house,
it
will
continue
to
provide
some
products
through
third-party
providers
on
an
invitation-only
basis.
What
to
do
if
your
funding
provider
stops
lending
If
your
small
business
funding
provider
closes,
there
are
several
steps
you
should
take
to
protect
your
interests
and
ensure
continuity
for
your
business.
-
Gather
paperwork:
Collect
all
the
documentation
you
have
about
the
funding
you
received
from
your
provider.
This
will
ensure
you
have
the
information
ready
when
you
talk
to
your
funding
provider
or
financial
expert
for
advice
about
your
situation. -
Contact
your
funding
provider:
Find
out
what’s
happening
with
your
account.
Make
sure
to
ask
about
any
money
you
owe,
or
they
owe
you.
It’s
essential
to
understand
the
status
of
your
account
and
any
financial
obligations
so
you
can
plan
accordingly. -
Seek
new
funding
providers:
Explore
alternative
funding
to
avoid
disruptions
to
your
business.
Inform
new
funding
providers
about
your
situation
to
help
ensure
a
smooth
transition. -
Keep
a
record:
Keep
track
of
all
the
conversations
and
transactions
related
to
the
closure
of
your
funding
provider
and
the
opening
of
any
new
accounts.
You
never
know
when
you
might
need
to
reference
it.
Questions
to
ask
your
funding
provider
It’s
best
to
prepare
questions
before
you
contact
your
funding
provider
to
ensure
that
you
get
all
the
answers
you
need.
Here
are
some
to
get
you
started:
-
What
is
my
current
account
status? -
Will
you
continue
to
service
my
account? -
What
is
the
last
day
I
can
qualify
for
additional
funding? -
How
and
when
will
your
UCC
liens
be
removed? -
Who
should
I
contact
if
I
have
questions
in
the
future?
Keep
a
record
of
the
answers
you
receive
and
take
note
of
who
you
spoke
to
and
when.
These
details
can
be
helpful
if
your
account
is
taken
over
by
another
person
or
provider
in
the
future.
How
to
find
new
funding
opportunities
Don’t
let
your
business
go
without
cash
flow
just
because
your
funding
provider
closed.
Use
the
tips
below
to
find
new
funding
opportunities.
Speak
to
a
financial
expert
The
best
funding
opportunities
for
your
business
will
depend
on
your
unique
situation.
Contacting
your
accountant
or
CPA
is
a
great
place
to
get
started.
These
financial
experts
will
be
able
to
evaluate
your
business
and
goals
and
provide
recommendations
based
on
your
needs.
Consider
SBA
Loans
Small
Business
Administration
(SBA)
loans
can
offer
valuable
funding
for
your
small
business.
SBA
loans
offer
competitive
interest
rates
and
longer
repayment
terms
than
traditional
bank
loans,
making
them
an
attractive
financing
option
for
small
businesses.
However,
while
SBA
loans
offer
favorable
terms,
they
still
require
repayment
with
interest,
so
make
sure
to
account
for
that
in
your
budget
forecasting.
To
apply,
begin
by
assessing
your
business’s
financial
needs
and
ensuring
that
you
meet
the
eligibility
requirements
set
by
the
SBA,
which
typically
include
factors
such
as
creditworthiness,
collateral,
and
a
solid
business
plan.
Seek
a
different
funding
provider
Funding
Circle
and
Amazon
Small
Business
Lending
aren’t
your
only
options.
There
are
many
different
providers
who
can
help
you
secure
the
funding
you
need
through
different
financial
products.
When
looking
for
a
new
funding
partner,
seek
out
providers
who
offer
different
products,
so
you
can
choose
the
best
option
for
your
business.
If
you
need
immediate
funding,
consider
revenue-based
financing
providers.
This
type
of
funding
has
a
straightforward
application
and
fast
approval
times,
making
it
ideal
for
businesses
in
need
of
immediate
capital.
Term
loans
can
also
be
a
useful
tool.
But
this
option
may
take
longer
to
secure,
so
it
is
better
suited
for
businesses
without
a
pressing
need
for
capital.
Submit
a
funding
application
online
At
Biz2Credit,
our
number
one
priority
is
helping
small
businesses
grow
and
thrive.
Since
2007,
we’ve
helped
tens
of
thousands
of
small
businesses
secure
more
than
$8
billion
in
commercial
funding.
Get
started
by
learning
more
about
our
revenue-based
financing
and
term
loan
options.
Bottom
Line
The
closures
of
Funding
Circle
and
Amazon
Lending
don’t
have
to
be
the
end
of
your
funding
journey.
There
are
still
plenty
of
alternative
sources
for
financing
your
small
business.
If
you
would
like
a
personalized
consultation
with
a
Biz2Credit
funding
specialist,
get
in
touch
with
us
today.
Your
business
growth
is
our
priority.
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