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bank collapse and alternative financingThe failure of Silicon Valley Bank (SVB) in April 2023 has had a significant impact on new and small business loans. In the wake of the collapse, banks have become more cautious about lending, and many have tightened their lending standards. This has made it more difficult for new and small businesses to obtain financing, and has led to a decline in lending activity.

The impact of the SVB collapse on new and small business loans is likely to be felt for some time. As banks continue to be cautious about lending, it is likely that the supply of credit will remain tight. This could make it difficult for new and small businesses to grow and expand, and could slow the overall economy.

How Small Businesses Can Get Financing

There are a number of things that small businesses can do to mitigate the impact of the SVB collapse on their access to credit. First, small businesses should make sure that they have a strong financial foundation. This means having a healthy balance sheet, a good credit score, and a solid cash flow. 

Second, small businesses should diversify their funding sources. This means having a mix of debt and equity financing, and not relying on just one source of funding. 

Third, small businesses should build relationships with their bankers and finance partners. This will help them to get better terms on loans and to be more likely to be approved for financing.

The SVB collapse is a reminder that the financial system is fragile. Small businesses should be prepared for the possibility of future bank failures, and should take steps to mitigate the impact of these failures on their access to credit.

Invoice Factoring Can Help

Fortunately, new and small businesses have an alternative to traditional bank loans and business financing. Riviera Finance has been providing financial services and invoice factoring for new, small and medium-sized businesses since 1969. Our North California (NorCal) office currently domiciled in San Jose next to Norman Mineta San Jose International Airport (SJC) has been serving Silicon Valley and the greater Northern California area for more than 50 years.

Rivera’s credit decisions are based on the credit worthiness of your clients, not you. We provide fast, friendly and efficient invoice factoring to meet your immediate and longer term cash flow needs.

Apply here for a no obligation, free quote or contact us online today.   

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