Why It’s So Hard To Get A Bank Of New York Business Line of Credit
Many small businesses look to big banks like a Bank of New York Business Line of Credit when their credit card has reached its limits. A credit card for financing isn’t always the best idea due to their high costs and limited allowances. If you don’t have enough credit to cover you, you can always request a credit increase. However, based on credit history and financials, this isn’t always easy. The amount you might be approved for may not be enough. Nowadays, there are other financing companies like Financing Solutions specifically designed for small businesses. The application takes 2-minutes to fill out, they require no collateral and the line costs nothing to setup.
Many business owners have never applied for a business loan or line of credit before so they are unaware of the process. In fact, securing business loans from a bank is incredibly difficult. The requirements that banks like a Bank of New York Business Line of Credit have makes the whole process difficult for the customer. Between filling out the application, filling out extensive personal and business financial statements, finding all the backup documents, needing to have 100% collateral, signing personal guarantees and so on, it’ll take weeks to get everything ready and you still don’t know that you will qualify.
Once you’ve prepared everything you will often find out that it will take an additional 2-3 months to get approved. During the application process, the bank will want to look at the industry you’re in, many different financial ratios, accounts receivable, accounts payable. credit history, tax returns, and many other key areas of your business.
The Trouble With Securing a Bank of New York Business Line of Credit
Bank of New York, and frankly most other big banks, don’t like working with small businesses. If you’re a small business owner, you’ll have to jump giant hurdles to even get the most basic consideration.
It is hard to get a Bank of New York Business Line of Credit. Unless you are running a business with over $10 million in yearly sales, have a credit score over 680, and over three months to wait for loan approval, working with Bank of New York will be a waste of your time.
A Bank of New York business Line of Credi and other big banks have a very high bar of entry and typically only want to deal with established businesses. When it comes to you, the small business owner and backbone of America’s economy, well they don’t consider you worth the time.
While it’s understandable that huge banks want to maximize their profits with the least work, small business owners need and deserve financing resources too.
Bank of New York takes their time when it comes to business loan applicants and loan approval. On top of the time, it takes you to prepare the documents you need, you’ll end up waiting 2-3 months to hear back from them about whether or not you qualify for a loan or other financial services and each bank you apply to will want their own application and documents. If you’re in no rush, this is fine. If you’re a small business owner with pressing needs, this simply won’t cut it. You can find much more agreeable waiting times elsewhere.
Collateral & Personal Guarantees
Bank of New York and most other banks will demand collateral and/or a personal guarantee if you want a loan or line of credit from them. There are alternatives to the big banks that won’t ask you to essentially take a second mortgage on your home.
Financing Solutions Works with Small Businesses
Fortunately, there are other financial services that offer a solution to the pressing concerns small business owners face. Financing Solutions offers business loans and lines of credit to small business owners. The company was started by two serial entrepreneurs who know all too well the challenges small business owners face. Over the last 25 years, Financing Solution co-founders. Keith Giovannoli and Stephen Halasnik built eight businesses. During that time, they gained plenty of first-hand experience of the things that make dealing with banks so frustrating.
By looking at how the banks deal with passionate small business owners, Keith and Stephen came up with some ideas of their own. The two of them started their own financing company that provides lines of credit to businesses and non-profits alike. They found a way to provide loans and lines of credit without all the requirements laid out by community banks and big banks like Bank of New York with better customer service often more agreeable terms.
Applying for a business loan or line of credit takes about two minutes. After you’re done, you’ll get an offer letter that’s one page long, straight to the point, and easy to understand. You’ll also be allotted a Relationship Manager to provide personalized customer service. Your Relationship Manager will call you and go over terms, rates, payment, and explain online resources.
A line of credit from Financing Solutions is free to set up and you won’t pay a fee or interest until you start drawing funds. You can then use the funds to finance any of your business expenses. There is no origination fee and no collateral or personal guarantee requirements either. The Line will be set up in 48-72 hours after submitting a tax return, bank statements, credit check, credit score, and a few other basic documents.