Having working capital on hand for your business is as vital as are the customers who buy what you’re selling. Whether you’re just starting out or you need an infusion of cash to expand or recover from a setback, sooner or later you will find yourself needing to borrow money. Unless you’re a trust fund baby or you feel like hitting up your Aunt Polly, your best bet is to study up on finding the best source of financial support for your company.
There are numerous potential sources for loans, but some of them are not as reputable as others. As you peruse the wide selection of lenders, you will notice right away that some are traditional banks. Your first impulse might be to immediately apply to them above all others. Before you do, it is important to understand those very big lenders such as these may prefer to focus on large businesses. In addition, even if they are willing to consider you as a borrower, the application process for these so-called traditional lenders can often be quite complex. Very small businesses or those with a low or insufficient credit score, a history of bankruptcy or companies in higher-risk industries are often turned down by these giant lenders.
Fortunately, large banks are just the tip of the lending iceberg. These days, many online and small lenders are ready and willing to provide you with the working capital you need. Just make sure that you only look at those that are accredited in the U.S.
FIND A LENDER WITH AN EASY APPLICATION PROCESS
You should not need an advanced degree to fill out your loan application. If you are going with a nontraditional lender, the amount of documentation you are asked to provide should also be quite manageable. If your potential lender is asking for what you believe to be too much information, keep shopping around.
ASK ABOUT APPROVAL SPEED
When applying for the money you need through an old-school bank, you can often expect to twiddle your thumbs for weeks until you get the financial shot in the arm you need. That is not the case with funds from an online lender. In many cases, you should be able to get your dollars within 24 hours.
INQUIRE ABOUT YOUR OPTIONS
Just as non-traditional lenders are more agile when it comes to getting you the capital you need quickly, they also offer greater flexibility when it comes to their product offerings. Instead of locking you into making fixed payments over a set period of time, these lenders give you the chance to take advantage of vehicles such as lines of credit, merchant cash advances, and even unsecured loans. Just make sure that you fully understand all of the payments associated with your choice before you make the commitment.
Whether you are just getting ready to launch your dream business or need to revitalize it with a financial catalyst, there is a widely varied selection of lenders willing to entertain the idea of offering you a loan. If the prospect of finding the top ones seems too overwhelming, consider applying through a lender marketplace. These helpful aggregators are a great way to compare your options and choose the one that makes the most sense for your company.