Non-Bank Small Business Lenders And Small Business Advocates Work Together to Set Best Practices, Raise Standards
Advancing Innovation and Providing Access to Capital for Small Businesses
WASHINGTON, July 12, 2016 /PRNewswire/ -- The Coalition for Responsible Business Finance (CRBF) today announces its Code of Ethics and Best Practices, a set of commitments created to raise the bar for transparency and disclosures regarding small business lending.
Two things distinguish these best practices from others, and are reflective of CRBF's mission. First, these best practices were developed in close cooperation with top small business advocacy organizations, who shared their perspective on how lenders can best help small business owners to make better informed decisions when it comes to seeking capital. Second, these best practices outline very specific commitments on two of the biggest issues the industry needs to tackle, setting clear standards to prevent harmful stacking and harmful double dipping.
CRBF's membership represents the broadest cross-section of the Non-Bank Small Business (NBSB) financing sector, including data analysis and credit reporting, direct lending, merchant cash advance, and commercial finance contract servicing. These diverse businesses have joined together to bolster the trust and credibility of the NBSB financing industry by making public their commitment to responsible business practices.
CRBF's Best Practices is a written commitment to provide the highest level of transparency to empower small business borrowers to make fully informed decisions when considering accessing capital outside of the banking system.
"Access to capital continues to be a top priority for NSBA, and CRBF's efforts will help raise the bar for practices within a growing financial services sector that can help small businesses tap into much-needed alternative funding sources," stated Todd McCracken, National Small Business Association (NSBA) President and CEO, and an Advisory Board member for CRBF.
CRBF Advisory Board Member Karen Kerrigan, President & CEO of the Small Business & Entrepreneurship Council (SBE Council), also voiced her support, noting, "These best practices demonstrate how leaders in specialty finance can raise the bar for how small business borrowers are treated. Arming small business owners with information through disclosure and transparency is far better than prescriptive regulatory requirements that will limit small business choices, drive up the cost of capital and harm innovation in the industry."
Small business credit through traditional bank loans has declined since 2006 and, according to NSBA, 69% of small businesses are unable to find adequate financing. CRBF is committed to demonstrating the leadership necessary to show how technology, innovation, responsible business practices as well as responsible borrowers can fill the small business credit gap and grow the economy.
About CRBF:
The Coalition for Responsible Business Finance (CRBF) is a group of businesses and service providers that advocate for the value of alternative financing opportunities for small businesses. CRBF was created to educate state and federal policymakers, media, and communities on how technology and innovation are providing small businesses access to capital that is necessary for growth. The Coalition's purpose is to bolster the trust and credibility of this growing industry through responsible business practices while ensuring that online products and services meet the needs of America's small business community. For more on the CRBF, please visit www.ResponsibleFinance.com.
Media Contact Info:
Tom Sullivan, Executive Director
Coalition for Responsible Business Finance (CRBF)
[email protected]
(202) 905-2571
SOURCE Coalition for Responsible Business Finance
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