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
- Asset Based Lending – Small Business Fundz has extensive experiencing in working with the best asset based lenders in the country. The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets. The interest rates on asset based lending loans are less than the interest on unsecured loan products like merchant cash advances and ACH business loans.
- Business Cash Advance – A business cash advance is an alternative unsecured cash advance specifically for businesses that have been turned down for a traditional loan. Bad credit, time in business, or even a small loan request can prevent you from receiving a bank loan. Small Business Fundz specializes in helping small business owners secure the capital they need regardless of their situation.
- Equipment Leasing – Equipment leasing is a process by which Small Business Fundz can provide capital for new or used equipment to a business owner. Leasing preserves your cash flow and offers tax advantages. This is important to maintain the best equipment which ultimately increases production and revenues.
- Factor Funding – Small Business Fundz offers Factor Funding or Financing for businesses that have large outstanding accounts receivables. Slow paying customers or government contract clients often take 30-120 days to pay. As a business owner you still have to cover your overhead and often layout cash for inventory or supplies in order to complete a job. This puts a huge strain on your cash flow and can hamper the growth of your business and occupy your mind when you need to concentrate on expanding your business and paying your bills.
- Merchant Cash Advance – Merchant cash advance financing is not considered a loan. A merchant cash advance is an advance of cash on future credit card receivables. There is no set repayment term only a set pay back amount. There is no APR for this reason. A flat fee is charged for the use of the money. As a business owner you will be given a term sheet indicating the amount you are borrowing and what your total pay back amount will be (the fee charged for the funding).
- Unsecured Small Business Loans – There is a huge demand for small business loans and particularly unsecured small business loans. Small Business Fundz can help any small business owner find the capital they need without any collateral. We can do this in less than 5 days in most cases so you have the capital you need for expansion, payroll, inventory, or working capital.
To apply for small business loans click here.
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