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 [email protected] or 520-573-4181. On Twitter: @dwichner. On Facebook: Facebook.com/DailyStarBiz
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
LeSean McCoy’s planned affordable housing community in Harrisburg moves forwardThe community will include 41 townhomes and a community center.
Read more »
Man found dead in Tucson mobile home fireTucson Fire crews found a man dead on the couch after they responded to a mobile home fire early Tuesday morning.
Read more »
Tucson's April: Warmer than normal and bone dryIn April, Tucson hit both 95 degrees and 100 degrees for the first time this year.
Read more »
New trial date set in killing of 6-year-old Tucson girlChristopher M. Clements faces a second trial in the kidnapping and killing of Isabel Celis in April 2012.
Read more »
Business awards earned in Tucson and Southern ArizonaHonors earned by Southern Arizona businesses, leaders, organizations.
Read more »
Water main break on Speedway BoulevardTucson Water and Tucson Police Department responded to a water main break on Speedway Boulevard and Jerrie Avenue.
Read more »