If you are a current or aspiring small business owner, you know the importance of having money in the bank for all the expenses that arise. The only problem is that there are times when the process can take weeks. You need a small business loan, and you need it now. So, how do you make this happen?
Getting a Small Business Loan Quickly
If you’re looking to get a small business loan with a quick turnaround time, here are some tips on how to get the process moving.
Unsecured Business Loans
You might have found that you have cash flow problems. Maybe your bank hasn’t been as generous lately as they used to be. One possible solution to a problem like this is an unsecured small business loan. The best way to go about this is to have a loan agreed in principle before you need the funds. Most alternative lenders have criteria for what they are willing to loan along with interest rates and repayment terms. No matter what, they can all quickly transfer funds into your account once the principal has been agreed upon.
If the problem you’re experiencing is a break down in equipment, asset finance can release the capital from your assets quickly. It can provide financing using your high-value items as security and allows loans to be advanced much quicker, possibly even within 24 hours.
Sometimes as you’re waiting for the finalization of other forms of financing, things just pile up on you. If you’re worried your other means of financing will not be fast enough, a short-term answer could be a bridging loan. These types of loans are fast to arrange and do not need extensive checks to be approved. The downside is that this type of loan will need to be secured against your property.
How to Apply for a Small Business Loan
If you are in need of a small business loan, it is important to know which steps you need to take.
Figure Out Why You Need the Loan
It is important to first truly understand why you need the loan. For some, it is to start a business, and for others, it might be to cover day-to-day expenses. No matter what the reason is, the lenders will ask you for your reasoning when you apply for a small business loan.
Decide What Type of Loan You Need
Lenders such as As Is Loans will have different types of loans that you can choose from, all of which serve different purchases. You can save you and your lender money by doing a little bit of research and figuring out what type of loan you want. Businesses with at least one year of history will have some options available to them.
Determine the Best Type of Small-Business Lender
Banks are not the only option for small business loans anymore. You can shop around and figure out what kind of lender would work best for you. You should use banks if you can provide collateral, have good credit, and do not need the cash fast. The usual bank options include term loans, lines of credit, and commercial mortgages to buy properties. Small business loans include short-term micro-loans, disaster loans, and SBA loans. However, you will have a harder time getting approved.
You should use a micro-lender if you didn’t get a traditional loan because your company is too small. These lenders typically lend short-term loans of less than $35,000. The APR on these loans is typically higher than bank loans. It will also have a more detailed application process. This type of loan is best for smaller companies or startups that don’t qualify for a traditional bank loan.
Online lenders should be used when you lack collateral, you lack a business history, and you need the funding quickly. Online lenders can offer a small business loan and lines of credit ranging from $500 to $500,000. The approval rates are higher and funding is faster, but the APR rates on these loans can range anywhere from 7% to 108%.
Find Out if You Qualify
Next, you will need to make sure you qualify for the type of small business loan you are after. This will depend on factors like credit scores, work history, how long you have been in business, and if you can pay the loan off. All lenders are a little different, so it is best to research their qualifications first.
Gather Up Necessary Documents
Before you go to see your lender, make sure you gather whatever information the lender will need to go through with the application and approval process. This will also vary from lender to lender, so verify what you will need to bring with you.
Banks do not have to be your only option anymore. If you are looking for a small business loan, give As Is Loans a call at (800) 611-2747. You can speak to a loan advisor and see what kind of loan is best for your small business.