PMF Bancorp Offers A Real Alternative With Invoice Factoring
PMF Bancorp is shocked that in tough economic times, a major financial institution like Bank Of America would put the squeeze on small-business loans and cutting off their lines of credit. Under pressure to raise capital and cut risks, Bank of America is severing lines of credit to many small-business owners. The bank is demanding that the businesses pay off their credit line balances all at once as opposed to their regular monthly payments. If they can’t pay in full, they are being offered new repayment plans with far higher interest rates than their original credit lines had.
PMF Bancorp is disgusted by this harsh treatment of small business owners in America. We believe our invoice factoring and accounts receivables financing along with our import financing are the smart alternatives to standard bank loan products, especially Bank of America which seems to be now moving in the opposite direction of small business lending. Business owners complain that Bank of America’s credit squeeze is abrupt and could strain their small companies, even putting them out of business.
The credit cutoff is coming at a time when the California economy can’t seem to catch a break, and bucks what the financial industry says is a new trend of easing standards on business loans. Long-time clients are being forced to make new payments that are nearly ten times as expensive as their current interest-only payments. PMF Bancorp believes that such treatment is downright unfair and a wrong message to send to the American economy.
The capped credit lines stem from a corporate overhaul launched by Brian Moynihan, who became Bank of America’s chief executive in 2010. He promised to address losses caused by reining in risks and shedding all secondary investments.
Although Bank of America claims that a very small percentage of small-business customers have been affected by the changes, the truth is much bleaker. This is why Bank of America refused to provide exact numbers to the press. The bank still has 3.5 million non-mortgage loans to small businesses on its books. While Bank of America is advertising its own commitment to small business, credit cutoffs threatened to hurt the very same businesses they shepherded through the downturn by slashing costs.
Bank of America, regretting past actions, is taking it out on the small business owner. Honestly, enough is enough! If you are a small business owner and you need extra capital, forget about trying to finance a loan from the big banks any time soon. Instead, PMF Bancorp has the answer that you are looking for today.
