When you work with the bank the process could take weeks or even months to process. After all that time spent waiting, the result could be either not getting approved or getting approved for a small amount. Banks just aren’t giving out large sums of money to businesses any more. No longer do they have easy business loans for many small businesses. The risks are definitely higher and since the 2008 crisis they’ve had to pull back. When time is of the essence, the best bet is to go with a private lender who can process your working capital loan with 2-5 business days. Cash in your account on demand tends to work better.
These days things can change very quickly and as a business owner it’s important to be able to adapt to those changes. With the advancements in technology nearly everyone has access to the internet at all times with applications providing for almost every need on demand. Most chores today can be completed on a smart phone within minutes, from food to transportation to finding love. This was not the case just a few decades ago.
Shouldn’t banking and finance be this simple too? Absolutely! We should expect the business loan process to be just as easy. Many private lending companies have met the demands of the modern business. You can get an approval processed and have the money in your account without having to spend much energy.
Most applications for a working capital loan with a private lender will be one page total. Based on that information, which should only take a few minutes to provide, you will get the funding amount and terms back within 24 to 48 hours.
Long gone are the days where you have to go sit at a bank all day just to get a loan application into their hands. Some people follow this method. The modern business owner would use their time applying for a business loan online or a mobile application. The typical online application consists of basic information about your business and personal information about the owner. You will also need to provide that last 3-6 months business bank statements to verify revenue projections.
The entire online business loan application process can be completed in as little as 5 or ten minutes. What’s even more important is you can get the ball rolling without leaving your home or office. You can apply for a business loan anywhere you have access to the internet. This puts the power back in your hand and allows business owners time to do the things they need to do to run their business.
Definitely! When compared to banks, private lenders are approving about 8 out of 10 business owners. Banks right now are approving about 1 out of ten. If you are not a unicorn with a perfect business and personal credit profile you don’t stand a chance with the banks. Since most working capital loans weigh revenue much heavier than your business or personal credit many more business can get their hands on extra capital.
If your business is looking to get money from the bank you will need top tier credit. Additionally the company will need to show significant revenue with almost zero overdrafts. Any indication that you may have trouble paying back the loan and your business will not be approved.
On the other hand with a working capital loan from a private lender there are programs out there that will work with 500 minimum credit scores. Granted at that poor of a credit tier the underwriters will be looking much more closely at business revenue. Minimum these lenders will want to see is a run rate of $100,000 revenue per year. This is very easy to show for nearly all businesses and for a smaller easy business loan showing profitability is not a requirement.
The most important attribute of easy business loans is the ability to pay back the loan on your terms in structure that clear and straightforward. With working capital loans you’re typically not working with a variable interest rate or complicated amortization schedule. Most easy business loans provide a simple cost of funds instead of an interest rate. The total payback amount is shown to explicitly in the contract, along with the agreed payment schedule and amount.
Easy business loans like this take the guesswork out of acquiring funding for you business. The aspect makes the whole thing much easier to manage and budget for throughout the age of the loan. Plus when you take a loan from the bank there’s usually hidden fees for paying back the loan early. With the simple cost of funds there are no hidden fees. Many times direct lenders will even provide a reduced payback incentive for paying the loan off early.
These kinds of business loans work great for the short term and keep everything simple. For more information please give us a call at 888-583-9497 or submit a form. If you’re ready to find out how much you can get deposited into your bank account this week then submit an application.
