Being an entrepreneur is a tough job. The stress. The worry. It takes a special kind of person to journey down the road less traveled and a lot of businesses and nonprofit look to a small business loan to help out.
At Financing Solutions, we understand because we’ve been there.
From our humble beginning in 2012, we’ve been helping small business and nonprofit organizations reach new heights by providing small business loans.
But understand, we’re not your typical alternative lender. We don’t come from Wall Street.Our dedicated team takes a holistic approach to small business financing, and we stay with clients every step of the way to help them succeed because not only have we been a leader in providing small business loans but we worked with banks over the last 25 years ourselves.
Now I know – in a world filled with choice, you have other options. Mainly, commercial banks. But considering the headwinds facing the public financial services industry post-2008, their products aren’t as great as they used to be.
The Problem with Commercial Banks Giving Small Business Loans
After the subprime mortgage crisis of 2008, commercial banks were confronted with more stringent regulations. To avoid mistakes of the past, Federal regulators required banks to keep higher amounts of capital in-house and administer stricter lending policies.
From a borrower’s perspective, this means higher upfront collateral, increased loan covenants and higher interest rates based on your credit profile. To that point, the scrutiny also requires commercial banks to perform more credit analyses of prospective borrowers and increase their qualification standards as well.
In many instances, this leads to a three to six month waiting period to simply process a small business loan.
Now, if time is not an issue and you can negotiate from a position of strength – assuming full collateral to pledge against the loan – a commercial bank can be a viable option. But be aware, the waiting period doesn’t include the several days required to fill out the paperwork.
The Benefits of Using Alternative Lenders for Small Business Loans
Filling the initial void in the market, alternative lenders began providing small business loans as the crisis picked up. But, because capital is provided by private investors and not depositors, alternative lenders aren’t burned with the same regulatory requirements as commercial banks.
What else separates alternative lenders from commercial banks?
- Alternative lenders often require little or no collateral
- Alternative loans can be approved within days
- Less regulation allows for increased loan customization and more favorable terms
- Lower operating and compliance costs allow alternative lenders to offer lower interest rates
When choosing a loan structure, you usually have two options:
1) Fixed Loans:
Payable over a specified term, small business fixed loans provide a means for large capital purchases. Whether it’s upgrading or purchasing new equipment, renovating or updating your store, or simply expanding the business into new markets, an alternative lender can provide solutions tailored specifically for you.
2) Line of Credit:
Used to mitigate cash flow concerns, a small business line of credit offers peace of mind related to working capital expenses – such as payroll, rent or payables to suppliers.
A small business line of credit can also ensure you have the funds needed to meet large purchase orders or stockpile inventory during busy holiday sales periods.
How Financing Solutions Can Help
Since 2012, we’ve financed hundreds of satisfied clients with small business loans that help grow and expand their small business. And by providing 5-star customer service, we’ve maintained an A+ rating with the Better Business Bureau (BBB).
Unlike Wall Street investment banks or hedge funds, we take pride in building relationships that go well-beyond providing capital. We have extensive knowledge of both small and non-profit businesses and have a dedicated team that is available to help at any time.
Remember, we design our line of credit as a solution – not simply a product.
So what do you need to qualify for a Small Business Loan
To be eligible for a Financing Solutions line of credit, your business must generate at least $300,000 a year in revenue.
And what else?
That’s it. Understand, unlike commercial banks, we won’t waste your time. As business owners ourselves, we get it. Time is money. That’s why we ensure the entire process can be completed in as little as 24 hours.
Now the important question. What can we offer you?
Well, with our flexible loan terms we can provide:
- A line of credit up to $100,000 for businesses and non-profits
- A two-minute application that’s easy to understand
- No personal collateral required
- No credit check run
- Receive access to funds the same day, next day or whenever you prefer
But what happens if you don’t use the funds in your account? Great question.
With our satisfaction guarantee, no interest is charged until you make a withdrawal. Also, if the line of credit is repaid within 24 hours, there are zero interest charges. Unlike traditional loans, there are no penalties for early repayment.
You have the option to pay a little at a time or all at once. It’s entirely up to you.
Best of all, the entire line of credit is maintained for 12-months and can be renewed each year at no additional cost. And how does the application process work?
Well, first we need to verify your identity. We require a valid driver’s license, passport or government-issued ID. Next, you need to submit a voided check and provide bank statements so we can verify the financial health of your business. Last, we require a copy of your most recent tax return to verify revenue minimums are met.
However, once that’s out of the way, you and your team have full access to a Financing Solutions account portal. There, you can monitor your account balance, repay borrowed funds or request additional funds as needed. Remember, we’re committed to our clients. So as your business grows and your capital needs grow with it, we can increase the line of credit to ensure you keep up with rising demand.
What if something unforeseen happens?
Are you personally liable for the outstanding loan balance? In two words – absolutely not.
Absent of financial fraud or criminal misuse, you’re never liable to pledge or repay the loan with your personal assets. Additionally, if you exit the business because of weak customer demand or economic headwinds – you have no further liability beyond the collateralize assets held within the business.