Business financing is the life blood of just about every small business in the country. From Startups to established businesses sooner or later there is a need for capital. Without cash infusions a business cannot grow or expand and often will plateau and become stagnant. Small Business Funding is the source for all small businesses financial needs. Merchant cash advances, Asset based loans, Factoring, and unsecured working capital revenue based loans are what we know best.
Alternative lenders throughout the country cater to small businesses that are hampered with bad credit or limited cash needs that banks will not look at. If a traditional bank cannot make money on a loan, usually on requests for $50,000 and less, they will not even pursue the financing. If a business has been established for less than 3 or 4 years its the same story, as they are viewed as too much of a risk. Small Business Funding has the insight and experience in dealing with small businesses with those characteristics and is able to secure business financing for businesses all over the country in any type of industry. This hassle free process takes less than 7 days.
Business Financing Obstacles
Small businesses that have been in business for less than 3 or 4 years have an extremely difficult time of finding business financing. While banks are the best place to go to for capital due to their long repayment terms and low rates they are very restrictive. Regulations have caused banks to tighten their underwriting significantly from what it was 5 years ago. Most small businesses look for financing from between $10,000 and $50,000. The cost for a bank to underwrite and service loans of this size makes it cost prohibitive. The rates are so low and terms so long it is just about impossible to make any money once the overhead is factored in. True, if you have a great relationship with your bank they will gladly provide business financing for you. When you don’t, that is where alternative lenders step in. Credit scores, time in business, or low loan requests do not deter them. They have proprietary underwriting and algorithms specific to high risk businesses that allow them to provide business financing with very low defaults. This type of business financing, alternative financing, is quickly becoming accepted by many small businesses and by Wall Street. The rates are much higher and the terms much shorter. On average, business financing of this nature looks like this:
Average loan size: $30,000
Term: 110 business days
Daily Payment: $355
Types Of Business Financing That We Offer Through Our Lending Partners
- Merchant Cash Advance Solutions: Lender buys a small percentage of future credit card sales and advances you the money.
- Unsecured Small Business Loan: No credit card merchant account required. Calculated based on monthly revenue/sales.
- Asset Based Lending: These loans or lines of credit are secured by inventory, accounts receivable other assets.
- Factoring: These loans involve a factor who provides financing to the seller of the accounts in the form of an advance.
How Alternative Business Financing Works
These type of loans require daily repayments. That is, either a fixed daily payment or a percentage of your daily deposits is debited electronically on a daily basis. The speed at which the entire process, from applying to getting financed, takes less than 10 days on average. The documentation required is rather limited. One must provide only 3 months of merchant processing statements (only if you process credit cards) and 3 months of bank statements to get an approval in just 24 hours. Once an approval decision is given only a photo ID, voided check, lease, landlord verification, and merchant call is required prior to funding. Business financing of this sort is very valuable to a majority of the small businesses in our country. Too many have credit scores deemed risky and the amount of small businesses less than 3 or 4 years old is staggering. If you’re a small business looking for business financing apply and see how easy the process is and what you can be approved for. Small Business Funding is always standing by to navigate the murky waters of business financing and making the process hassle free, seamless, and fast!