New Tucson program offers small business loans without collateral

  • 📰 TucsonStar
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 59%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

The Community Investment Corp. and Startup Tucson partnered with a national group to offer small-business loans secured by future revenues, not assets.

David Wichner Tucson-area small businesses unable to get traditional commercial loans can tap a new source of capital, thanks to two local nonprofit organizations.

People are also reading… The program uses revenue-based financing, allowing small businesses to pledge future revenues for an advance of financial capital, with payments varying depending on how well a business is doing and its gross revenues.Payments are higher when the businesses are generating more revenues, and lower when they are generating less revenues — an especially helpful arrangement for seasonal businesses, CIC said.

“But the over-reliance on asset-based lending without complementary alternatives makes it nearly impossible for many small businesses, and especially those run by entrepreneurs of color, to get the financial capital they need to grow and succeed,” Knee said. Contact senior reporter David Wichner at dwichner@tucson.com or 520-573-4181. On Twitter: @dwichner. On Facebook: Facebook.com/DailyStarBiz

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 339. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business awards earned in Tucson and Southern ArizonaHonors earned by Southern Arizona businesses, leaders, organizations.
Source: TucsonStar - 🏆 339. / 59 Read more »