Why Are Small Business Loans from a Bank So Hard to Get
In business, it’s great when a bit of luck falls your way. Still, as every small business owner knows, most victories come from hard work. One of the hardest tasks is trying to get small business loans from a bank.
Being an entrepreneur is hard enough without lending institutions making it even worse. Unfortunately, that’s exactly what happens when you apply for small business loans from a bank. Thankfully, you do have other options.
The Difficulties of Getting Small Business Loans from a Bank
Getting a business cash loan can be beneficial when you are looking to expand, maintain or save your company. You may believe that a bank is the best choice but this is incorrect.
Most people don’t realize that a bank doesn’t care about your ideas or even your business when deciding whether or not to give you money. What they do care about is the collateral. You must have enough to make up the money they lend to you. Therefore, if you expect to get a business bank loan then you better plan on having the collateral to back it up.
Your credit history could also prove problematic. Banks won’t even consider your fast business loan application unless you have a personal and business credit score of at least 700.
Additionally, when your business seems disorganized, this can also be a red flag. This includes factors like having cash flow issues or not having all the necessary paperwork required to accompany your application.
Are There Alternatives to Small Business Loans
The truth is that banks grant less than half of the small business funding applications they receive. That’s why businesses today are turning to alternative lenders for help.
Your best option is a business cash advance company, like Financing Solutions (www.financingsolutionsnow.com). They offer business cash advances, debt restructuring and business lines of credit.
One of the advantages of the line of credit products from Financing Solutions is that you do not need collateral. They make their decisions based on your business’ cash flow and your personal credit history.
More importantly, they make it easy to repay your quick business financing so that you won’t have some big debt hanging over your head. They offer convenient repayment schedules that allow you to pay the money back in a few weeks or months, with no early payment penalties.
Why Being a Small Business Owner Doesn’t Have to Be So Hard
It takes a special kind of drive, vision and ambition to be a small business owner. No one ever said it would be easy but it also doesn’t have to be so hard.
There are numerous resources at your disposal — today, you can find help online for just about any business topic. Business mentors, tools and technologies are also readily available.
Make sure you can clearly explain your value proposition — in other words, everyone at your company should be able to quickly communicate why customers need what you are offering. This should not take more than three sentences and must be simple enough for anyone to understand.
Know where to go for immediate business funding — the ability to access fast business cash can be the difference between your success and failure. Trust Financing Solutions to provide the help you need.