How Business Bank Loans Really Work
Every business owner knows that it takes cash to sustain a company and that it may become necessary to borrow funds at some time. However, many are unaware of how business bank loans really work.
Banks have traditionally been the go-to source for entrepreneurs hoping to resuscitate or grow their business. Nonetheless, once you understand how business bank loans really work, you might have to start looking at other options for fast business financing.
An Honest Look at Business Bank Loans
Did you hear the joke about the entrepreneur who walks into a bank and leaves a few minutes later with a quick business loan? Of course, it would have to be a joke because this situation does not happen in real life. Here are a few hard and fast facts about business bank loans:
• Banks require tons collateral such as account receivables, stocks and equipment to back up the bank loan. Perhaps the most you can get from a bank is a home equity line of credit, where you have to put your house up for collateral.
• You may be able to apply for a line of credit that you can draw upon when needed, but it can take up to 8 weeks or more to get a bank line of credit in place.
• Banks make you fill out an enormous amount of paperwork and require numerous documents such as a letter from your accountant, reviewed financials and accounts payable reports.
• A bank has strict criteria and will look closely at your business income statement, balance sheet and tax return. If everything is not perfect, your application will be denied.
• Banks are no longer the ideal lenders because, truthfully, they typically do not lend money for start-up or small businesses.
Alternatives to Business Bank Loans
Today, smart business owners are turning to spot factoring and cash advance companies, like Financing Solutions (www.fundmypayroll.com), for funding assistance. This is the best option for business financing that is really fast.
With Financing Solutions, you can apply for fast business funding in as little as 15 minutes. You will receive a decision in about an hour and can have the cash you need in your account in less than two days.
Most importantly, they are accredited by the Better Business Bureau and work with all types of businesses. Unlike banks, they look at your business as a whole, so you may be approved even if your credit history is not great.
How to Really Help Your Business
As a small business owner, life can be stressful. You have employees counting on you to make payroll and customers who rely on your products and services. Even with so much on your plate, there are ways to make things a bit easier.
One thing you should do is to prepare for hard times. This involves creating a healthy supply of working capital to get you through seasonal and economic slow periods.
It is also vital to keep good, organized business records. Also, make sure all important matters and agreements are documented in writing. This small step can help you avoid big headaches later.
The most essential action you can take to help your business is to contact Financing Solutions. They will get you the cash now that you need to improve and prosper.