Getting Funding When You Want to Avoid Bank Loans
Few small businesses can thrive without financing. Whether you’re just getting started or looking for a way to propel your business forward, the best financing options can make all the difference. Find out how you can access competitive financing and avoid bank loans today.
Strict Approval Requirements
Becoming approved for a bank loan can be a long and difficult process. First, you need to make sure you pass all the strict requirements. Most banks aren’t interested in working with risky investments, so any business that hasn’t been in operation for two years and doesn’t have a firm financial footing is unlikely to become approved for a loan.
Similarly, as a small-business owner you need to make sure you have a high credit score and significant collateral to apply for the best bank loans. Otherwise, you may have to pay a premium or won’t be approved for a loan at all.
Long Application Process
A bank is a major financial institution which requires significant paperwork to process any financing request. From a line of credit to a conventional mortgage, expect to fill out plenty of paperwork during your loan process.
Even after the paperwork is finished, a loan can take weeks or even months to be approved. This time can leave your business in a difficult financial position. Instead of receiving prompt funding, you’ll have to wait and deal with mounting payments, low working capital and a lack of inventory and other resources.
Strict Spending Options
Most bank loans require you to provide reasons for funding and what you’ll spend your loan on. You’ll often need to provide receipts as proof that you used your loan exactly how you intended. These restrictions can make even the best interest rates and high credit limits unappealing to many business owners.
As a small-business owner, it’s difficult to know exactly how you’ll use your financing. You may have a sudden emergency, investment opportunity or other situations arise that divert your funding.
Alternative Financing Options
Instead of a restrictive bank loan, look for alternative lending options that provide you with the flexibility, responsiveness and lightning-fast application process you need. Turn an emergency situation into an opportunity for business growth with the best alternative financing options for short-term and long-term funding situations.
Compare your options from private institutions and other lenders today to learn how to avoid bank loans. Whether you’re purchasing real estate, making payroll on time or boosting your working capital, alternative funding options are available with generous terms and flexibility.