December 27, 2018 | By Peyton Sawyer
Are you a business owner looking for a business loan? When you need to borrow funds to grow or sustain the small business you have created, it can be quite stressful. Traditional banking institutions have set the bar pretty high when it comes to being approved for a loan or even receiving the loan in a reasonable amount of time.
The standards for approval require a business owner like you to have more than a satisfactory credit history, a good relationship with the bank you're requesting a loan from, and a business that is worth the investment in the bank's opinion. They don't take into consideration the blood, sweat, and tears that have been poured into the opening and running of the small business you've built from the ground up. Business is business, as usual.
Creating Business Relationship with Your Lender is Important
So, if you have less than a perfect credit history, meaning you are a risk in the bank's eyes and have not taken the time to create a business relationship with the institution, you'll most likely be denied for the funds you require. A business relationship that allows a traditional bank to track your payment history is established by accessing a business credit card, business banking account, or a business line of credit and assessing your ability to make payments. Approval with a traditional banking institution can be very difficult if you have not established the ties necessary to be considered.
Considering the Alternative to Traditional Banking Institutions
Even when your business relationships are non-existent and your credit score has dipped lower than you'd like, you still have options. There is no need to worry about the fate of your business when there are alternative lending methods available. Alternative lending options make it possible for struggling business owners to secure the funding needed without the stress of a long, drawn-out approval process. It may not be a business owners first choice due to the increased interest rate, but with some luck and research, you should be able to find a lender that can provide you with a decent interest rate, fast approval to address your financial issue in record time, and a loan agreement that gives you ample time and an affordable payment schedule.
Deciding If a Small Business Loan Is Right for You
There are several alternative funding options available to you as a business owner, For instance, a small business loan in the form of a merchant cash advance can provide the merchant or business owner, funding based on past and projected credit card sales. That's right! Approval is not based upon your past credit history. So there is no need to worry about being judged on the mistakes or hardships you faced in the past. Approval is based upon the business you have and will do. You can also expect to receive a monthly payment schedule that works for you. the approval amount is determined to fit an individual and their business, not your credit score, and you could be approved for the merchant cash advance funds at affordable rates.
Of course, it's still possible to default on any loan you receive, whether it's personal or professional, traditional or non-traditional. That's why it's important to review the terms of agreement for any loan, and only accept funds that are certain you can repay. If you find the funds are not available for payment, then contact your loan officer immediately to make other payment arrangements. Ready to receive the cash your business needs? Get the small business loan you need today, and dream big when it comes to your small business!