it’s important to point out that the hardest way to obtain a small business loan is through a traditional bank.
Your best bet is an alternative business lender like the company I founded, United Capital Source.
Banks have an extremely low approval rating for small business loans, primarily because borrowers must possess a perfect credit score and have a lot of cash or collateral on hand.
A perfect credit score requires a significant credit history featuring no missed payments, no maxed out credit cards, and a low credit utilization rating, which is the percentage of your available credit that is being used.
Banks will then examine cash flow since this determines whether your company can make monthly payments while covering regular expenses like rent and payroll. A great deal of businesses, however, tend to pay suppliers before getting they get paid themselves, giving the impression that more money is coming out than coming in.
Another reason banks reject so many small business loan applicants is a lack of collateral, or something the bank can sell in case the business loan is not paid back. New businesses typically do not have any equipment or real estate to offer or might not want to risk losing their homes and cars.
The only thing more frustrating than these qualifications it the approval process for a bank loan. There’s a ton of paperwork involved and you have to wait several months to find out whether or not you’ve been approved.
Credit Unions have a much higher approval rating than banks but only if you work in the same industry or live in the same general area as its members.
Here’s why the alternative lending process is easier:
Our applicants don’t need to provide collateral and are not judged by credit score, because poor credit is not an indicator of poor cash flow. Your business must have simply earned steady revenue over the past three months in order to be considered for one our many programs. We have issued small business loans to businesses in dozens of different industries, including businesses that were bound to experience inconsistencies in revenue due to their own unique circumstances.
To apply, visit our website and fill out our easy one-page application. You can find a link in my Bio. Unlike banks, we only need to see a few documents such as bank statements, business tax returns, and a profit and loss statement, and for some scenarios less documentation than that. Approval can be granted in less than 24 hours and funding could reach your bank account in a matter of days. If you pay off the first loan without hiccups, you’ll be able to obtain a second, larger loan from UCS with much better rates and terms & much quicker than the first.
As our previous clients can attest, what makes working with UCS so easy is the fact that our business loan experts are dedicated to making you feel comfortable and expressing genuine interest in your business. Once you realize that you are being treated like a human being and valued client, the process of finding the right program for you becomes infinitely easier. netentplay.com netent free spins