Small business loans are provided by all types of institutions. Traditional banks, credit unions, and alternative lenders, like smallbusinessfunding.com, can accommodate small businesses with capital.
Banks And Small Business Loans
Traditional Banks and Credit Unions have small business loans divisions that help facilitate capital infusions. The requirements are rather strict for a small business. They include a FICO of 750 or more, in business for at least 4-5 years, several years tax returns, no tax liens or bankruptcies, P/L’s, financials, etc…. the usual amount of time to hear if you’re approved or not can take weeks. Once approved the actual funding can take weeks as well so the entire process turnaround time may be months to receive the capital you need.
Alternative Lenders Support Small Business Loans
Alternative lenders require a simple 1 page application, a few months’ worth of bank statements and merchant statements. Depending on how much you need a tax return may be required as well but for the most part that’s it. Little documentation and fast decisions, that is the model. And if you’re approved for small business loans you can be funded within 5 days. That is the beauty of alternative lenders. Fast, Fast, Fast business funding! Cost of these loans compared to traditional bank loans are higher and their terms much shorter. These loans are for short term use to take care of a short term problems. Alternative lenders do not want to become your “partner.” They want to loan you the money, get paid back, and out of your life within 3-9 months’ time (sometimes up to 18 months). The cost of these loans is more than traditional loans but, if you have poor credit, bankruptcies, tax liens, just started a business this is your only choice. The loans are based on business performance rather than those other attributes. Alternative lenders providing small business loans will look past the poor credit etc… and see the true value of the business. A small business owner should not quantify these loans based on what they cost rather on how much that loan will make. A small business owner should look at the ROI on the loan to justify the cost of the loan.
The Necessity Of Alternative Small Business Loans
Small business loans from alternative lenders are absolutely necessary in today’s business environment. This country and it’s small business owners require an outlet to where business owners can go to for financing should they be turned down by a bank. A bank decline should not mean that a small business should just throw in the towel and not expand, hire new people, upgrade their facilities, make a large volume purchase at a discount, increase inventory, rebuild their infrastructure. Alternative lending offers small business owners another option that is viable, fast, relatively easy and ultimately is a last option for raising the capital they need in the form of alternative small business loans.
To apply for small business loans, fill out our online funding application.