You're watching...
Multifunding CEO Ami Kassar on the factors holding back lending to small businesses.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Says are touted by politicians on both sides of the aisle as the engine of job growth at the that there are companies out there right now having trouble.
Getting the money that they need to grow small business loan advisory firm multi funding says.
-- 2007.
US banks held over 681.
Billion dollars a small business loans now.
Four years later those same banks are holding only 605.
Billion joining me now with what's behind those numbers -- that drop.
As amicus.
CEO up multi fund.
Everyone talks about you know small businesses in the engine that rope and everything and we're gonna do everything we can't help him except.
Given the -- that they actually need to grow what's gone on.
Small -- of -- -- desperately need loans and banks.
Especially the back -- look big banks would love to loan to small business but they're looking for the perfect borrower who pristine credit the pristine collateral.
The pristine cash flow and there aren't many of those.
What's the antithesis of a small business operator -- -- -- struggling.
-- put it together I got all I got agreements a bubble gum I'm trying to keep of the -- need your help.
It's a struggle out there so they'll fight you know there's such there's great cheap money available today.
And -- unfortunately only a fraction a tiny fraction of small businesses can get their hands on it.
But you know I hear from bankers that say the exact opposite they say the problem has been a lack of demand and where's the disconnect I said I don't buy that -- So we see -- -- -- -- and we -- -- of this coming in all the time they're looking for the -- they wanna grow they wanted to expand.
They want to started new business.
And but fortunately.
-- most of them.
The great majority of them aren't bankable particularly.
At the country's Paper -- your firm is sort of a -- -- help them find is slow to you develop its -- -- help them do this explain them well we did a small businesses costs from across the country and we we listen to the situations and based on what's going on.
Which try to guide them and teach them about what's going on the -- markets -- in the best options and alternatives for them.
In the loan market.
Sounds like -- elaborate but what the right sort of guidance did these small businesses can find some loans or find some money out there yeah we -- the issue that's part is that we can find money for almost anybody the question is if they can afford the rate.
What's happened is because banks have tightened up so much particularly the larger back.
Business whole world out there -- you've got to turn to fracturing or accounts receivable financing or cash advance loans on hard money loans and you could pay anywhere from.
153040%.
Interest.
For your money.
And that's the problem is that because the backs of tight small business honestly don't do anything they can't to survive.
-- -- up getting pushed into heart money higher interest loans.
And once there on that trend -- mix and more and more difficult for them and -- and 30% golly I mean you're almost run what situation it thanks a lot really appreciate your time on that.
Craig amicus are from multi funding thank you appreciate -- small business watchers as --
