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With FDIC reserves plunging to $10.4 billion from $45 billion last fall and the number of troubled banks rising to 416 from 305 in the first quarter, more pressure is being put on banks to “shape up”.

Although the economy is showing clear signs of recovery, the banking sector may not rebound any time soon. It’s possible that the continued problems in the banking industry will substantially outlast the recession, resulting in a significantly suppressed availability of credit in a recovering economy.

With many banks struggling to keep their doors open, small business owners seeking financing, who are already finding limited options, are faced with desperate cash flow issues. As businesses attempt to recover along with the economy, they need financing solutions now.  It is critical that businesses acquire a funding source that is readily available and dependable.

Accounts Receivable Financing is an often overlooked choice for growing businesses. This form of financing (also known as Factoring), is a financial tool that allows businesses to capitalize on the power of their outstanding invoices. Factoring is a valuable mechanism to turn a business’ invoices into immediate cash, enabling them to fund business operations.

It is not widely understood, but a factoring firm provides funds to its clients based upon its clients’ accounts receivable. Most invoices billed to credit worthy customers can qualify. Banks, on the other hand, must consider more stringent criteria before qualifying a borrower for any type of funding. In most cases, when considering assisting a business based strictly upon its accounts receivable, factoring companies can provide funds when a commercial bank cannot.

Keith Mabe is Director of Operations for Charter Capital, recognized as one of the hardest working independent providers of invoice factoring for small to mid-sized businesses. Charter Capital offers a complete line of no-loan business funding and related financial services. Headquartered in Houston, Texas, Charter Capital provides accounts receivable financing and asset-based lending for major industries including freight and transportation, consulting firms, service providers, staffing firms, distributors and manufacturers, medical service providers. Find out more at http://www.CharterCapitalUSA.com

Article Source:http://www.articlesbase.com/loans-articles/economy-recovering-bank-loans-still-scarce-1291274.html

Investing in real estate is such a popular career because there is a lot of money that can be made. One of the ways you can get as much money as possible from your investing is by knowing how to secure funding. When you know how to secure funding, you are able to purchase properties without putting up a lot of your own money. This is vital if you want to be a successful investor. If you think about it, the more properties you can buy without using your own money, the more money you stand to make.

In years past, it was really easy to secure funding because all you did was go to your local bank and take out a mortgage loan. The reason that more people are wondering how to secure funding for their real estate transactions these days is because it is so much harder to get a loan from a bank. This is why you need to know how to get funding from other sources, mainly from private lenders. If you never have heard of these, they really are just regular people who are looking for a great return on an investment. They are willing to give you the cash for the property in return for a portion of the profit. (more…)