Lowering stringent requirements on credit is a good move on the part of financial institutions. This allows small businesses who need only low capitalization to borrow money. Of course the viability of every business is still considered. This lessens the risk on the lender. The borrower for his part will work hard to ensure the lender that they're loan payments will be met. The offering of unsecured business loans to the borrowing public has open the gates for progress and developments. Small business makes up a big part of our economy. A Mom and Pop may not seem much, but the revenue and economic activity it brings is substantial. Financial institutions used to ask for collateral far larger than the amount being borrowed. The rates are too high, making it very difficult to make the amortizations. Business easily fold up because of this practice. Now, financial institutions play a more active role, short of being partners, they give financial advice and even suggest strategies.