A sub-prime small-business lending company from Pennsylvania is expanding into the Milwaukee market.
American Business Credit, Inc., (ABC), a subsidiary of American Business Financial Services, Inc., Bala Cynwyd, Pa., will soon be targeting Milwaukee-area small businesses that may have trouble obtaining financing from traditional lending sources.
The company plans to begin its Milwaukee launch by hiring two loan officers. If its lending products become popular in this market, the sales force would then be expanded, said Tom Brubaker, vice president of marketing for the firm.
"We typically do not open a physical presence in a territory until we know it’s going to be successful," Brubaker said.
With the expansion into Milwaukee and into Boston, ABC now serves small businesses in 23 states.
ABC can offer a decision on a loan within 24 hours. All of the company’s loans are secured by using the small business client’s commercial or personal real estate as collateral.
The loan rates are higher than those from traditional loan sources, Brubaker said.
"Typically, our customers may have had a problem securing lending from traditional banks. Our interest rates are commensurate with the risks," Brubaker said. "But there are other reasons customers come to us. Speed – a traditional bank might take 60 days to turn around a small business loan."
American Business Financial Services’ annual report states, "These borrowers generally have impaired or unsubstantiated credit histories and/or unverifiable income. … Historically, our customers have been willing to pay our origination fees and interest rates, even though they are generally higher than those charged by traditional lending sources."
ABC’s loans to its customers range from $15,000 to $500,000, the company said.
Small businesses interested in ABC’s loan products can contact the company on the Internet at www.abcezloan.com or by calling 1-800-866-6639.
Nov. 22, 2002 Small Business Times, Milwaukee
