Numerous lenders offer small business loans, but they are not created equal. What you can expect from a bank will be quite different than what you will get from an alternative lender. Before you make a decision about where to go, you need to learn about business loan rates from an alternative financing company.
In business, sometimes it’s not only about having the right information; it’s about what you do with it. After gaining an understanding of business loan rates, you may find that an alternative financing company is the only way to go.
What Are Business Loan Rates from a Bank?
If you are considering a short term business loan, you probably have many questions. For instance, you need to know how much you can get and how you will pay it back. Knowing business loan rates could affect the answers.
There is no question about it. A line of credit from a bank will be much more expensive and the annual rates could be 8-12 percent. However, what many people don’t take into account is that most business lines from a bank also have other charges.
This may include costs like yearly fees to have the line in place, closing costs and appraisal costs for collateral. Banks will not give a line of credit without some form of collateral.
Are There Alternatives to Paying Business Loan Rates at a Bank?
It makes no sense to work with a bank if you don’t have the collateral or you don’t have 3-6 months to wait for your bank to give you an answer. An alternative financing company, like Financing Solutions (www.financingsolutionsnow.com), will not require collateral or yearly fees.
With an alternative lender, getting a line of credit is very affordable. For example, let’s say you need $5,000 for a very short period of time, like 20 days. The cost from Financing Solutions would be as low as $250. That $250 cost is insignificant compared to the peace of mind that comes from making payroll, covering a check sent to a supplier, or making an important investment in your company’s growth.
With an unsecured line of credit, you can operate your business as usual. You don’t have to put things off until later or worry about how you will handle an emergency, like an equipment breakdown. Every business should have a line of credit just in case.
What You Don’t Know about Running Your Business Could Hurt You
Know the real reason why something is going wrong before taking steps to fix a problem. For instance, you may think a drop in sales is the result of seasonal fluctuations or quality control. In fact, it could be poor customer service or negative online reviews.
Know when you are doing too much. Spreading yourself too thin is a common mistake for entrepreneurs. It’s important to realize you can’t do everything. As the owner, you must focus on the tasks that relate directly to growth. Then, delegate the rest.
Know where to go for immediate business financing. Let Financing Solutions be your go-to source for business success.
