The mission of MultiFunding is to help small-business owners and entrepreneurs through the challenges of getting loans and working capital, according to its founder Anne Kassar.
MultiFunding aims to match borrowers with lenders so borrowers get the best loans: the lowest possible price with the best possible terms.
Small-Business Lending Is a Highly Inefficient Market
Few owners have the time to investigate credit markets. The processes are confusing and overwhelming.
Small-Business Lending Is a Confusing Mess
The owner poses good questions: Why has there been a decrease in lending? Have the banks stopped making the risky loans they were making before the economic crisis hit? Did they overreact and stop making even sound loans to sound companies? Or did lending drop because after the recession, businesses started to retrench and their demand for credit declined? Did all banks stop lending or was it just the big banks? It is very hard to get definitive answers to these kinds of questions.
One reason is that we can’t even agree on important definitions. The Small Business Administration reports on lending activity, but nobody knows what percentage of overall lending the S.B.A. accounts for. The big banks release their scorecards on small-business lending, but they define small businesses as those with revenue of $20 million or less. For its reports, the Federal Reserve defines small businesses as having revenue of $50 million or less. The Federal Deposit Insurance Corporation defines small-business loans as those with balances of $1 million or less in its reports. The merchant cash advance lenders and factors do not release reports at all.
Many Small Business Owners Are Still Reeling
Some say that the recession is over and that the economy is on the mend. However, most small-business owners report that they are still reeling from the recession and struggling to catch up. Working capital is a fight. Banks are not easy to deal with, and fair loans are tough to come by.