Where to Get a Small Business Line of Credit
Article Summary: For a flexible financing option, nothing beats a small business line of credit. Various lenders offer this funding, so it’s important to know what you can expect and which is best for the unique needs of your business.
Why the Old Ways of Getting a Small Business Line of Credit Won’t Work
It used to be that you would walk into your local bank and the bank manager or owner would come out to shake your hand. You would talk about your family and maybe your golf game. Chances are that you already knew each other and the bank officer would give you a small business loan based on your character.
Those days are long gone. Banks no longer want to deal with lending a small business line of credit.
If your business has less than $10 million in sales then banks are just not that interested in dealing with you. And you can forget about any loan based on a relationship or trust. It all comes down to your cash flow, profitability, and credit score. Oh, and you must also have 100 percent collateral to back up a business bank loan or small business line of credit.
Is There an Alternative to a Bank for a Small Business Line of Credit?
Yes. Banks are now being replaced by alternative lenders. Alternative lenders have quickly become the number one place for small businesses with under $10 million in sales. There are numerous reasons for this shift.
- Alternative lenders use private money so they have no restrictions on who they loan to
- You can have your LOC up and in place in 48-72 hours with an alternative lender
- A line of credit from an alternative lender costs nothing to set up
- With alternative lenders, you get easier approval standards
- Banks just can’t compete nor do they want to. They only want to deal with larger transactions
Why the New Ways of Getting a Small Business Line of Credit is better
1. Over the last 10 years, it has become easier and faster for business owners to get credit. There are numerous alternative lenders that can give you the fast small business financing you need without going to a commercial bank.
2. One of the most popular old methods, getting cash through business credit cards, is expensive due to a high APR and a variety of fees. Plus, a credit card has limits on how much you can use. A line of credit typically gives you a larger amount.
3. You don’t have time to waste. As a small business owner, you have a lot on your plate. If you are stuck going from bank to bank, filling out tons of paperwork only to be denied, then you are not focusing on growing your business. Getting a small business line of credit from an alternative lender, like Financing Solutions (www.financingsolutionsnow.com), will save you time, money and headaches.
The best time to get a small business line of credit is before you need it. When you have to search for fast business financing in a hurry you make mistakes and poor decisions. And lenders don’t like working with disparate businesses in dire straits. Getting an offer from Financing Solutions for a small business line of credit takes only two minutes and you will receive a written offer by email for you to consider.