American Receivable
DFW: (972) 404-4726 | Austin: (512) 339-5112
pandemic smb funding

How the Pandemic Has Affected Small Business Financing

From the red hot economy of 2018 and early 2019 to government mandated shutdowns and supply shortages, small and medium sized business owners have had to both pivot and adapt to survive the pandemic.  Banks and small business financing companies were not excluded from this scenario. 

Congress had the biggest influence in the economy by passing both the Paycheck Protection Program and the Economic Injury Disaster Loan.  Both are administered thru the SBA and have pumped over 729 billion dollars into the economy.  This money propped up businesses and we avoided the predicted tidal wave of bankruptcies from small and medium sized business. 

Banks were the funnel for the PPP.  Demand for PPP loans overwhelmed banks.  They primarily became PPP lenders, not having the resources to field other lending requests.  This left potential borrowers turning to alternative lenders to finance their business. 

Now that the economy has reopened, businesses are again seeking financing.  Banks have become more conservative in their lending.  Approving fewer lending requests as they wait to see how the pandemic will play out.  This again puts alternative lenders, especially factors, in the spotlight.  By focusing on the strength of the companies’ customers and not their financial history, invoice factoring companies provide the capital a business owner needs to take advantage of today’s growing economy.

American Receivable is a 43 year old invoice factoring company. During the pandemic, demand for our top-rated factoring service continued to grow.  ARC remains owned and operated by the original founders.  We have helped our clients survive and thrive in both bad and great economies. Prospects never pay an application fee and are qualified on the credit strength of their customers, not their personal credit.  American Receivable’s longevity is based on our client’s success. 

Schedule a conversation to learn more how American Receivable will provide the cash you need to thrive.

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Voted best Invoice Factoring Company for SMBs for 2023 by


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