In today’s economy, small businesses are continuing to search for lending opportunities.  With banks decreasing investments to small firms, and a slow down in the alternative lending market, one has to wonder if a small business crisis is on the horizon.  Able Lending is looking to buck the trend by providing a different type of business model for investors.

Able only finances organizations who are “backed” by early investors.  The company “has borrowers get “backers” or other friends, family or customers to fund part of the loan. The company says that, in addition to offering longer repayment periods, this enables it to charge lower APRs than its competitors because Able has found that having someone the borrower knows contribute to the loan increases their willingness to repay.”

And the key indeed is being repaid.  Although only a two year old company, Able Lending has yet to have a default.  Lending out $30 million in that time frame, the company is so far proving its business model works for small businesses and more importantly investors.  This unique business model has attracted Community Investment Management which resulted in $100 million in additional funds.

When things don’t work, innovate ideas like Able Lending’s model need to be developed.  Small businesses are crucial to the American economy and failure or decrease in lending is unacceptable.  More alternative sources must grow in order to give our small firms a fighting chance at success.