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Cash Advances & Working Capital Online – Fast, Flexible Business Financing

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Funding your business is a top priority, but did you know not all small business lenders offer the same level of service, solutions or ease?

Growing a business typically requires more capital than a business owner has to offer, so it is important to understand your financing options, the challenges, benefits, and all of the risks. Though you may think all lending companies are the same, they are not created equal.

Understanding Your Financing Options

Never just leap at the traditional path when it comes to your business. Creative thinkers and entrepreneurs often get ahead because they seek better, innovative solutions.

Take a closer look at the different types of small business lending companies: banks, credit unions, the Small Business Administration, and alternative funding through Credibly and other alternative lenders. Weigh the pros and cons and consider the ease of each avenue of lending.

Banks

Banks offer a traditional path in small business loans. According to about.com, prior to the 2008 recession, most successful small businesses had established relationships with a bank and got their business loans through that traditional channel. But today, banks have tightened their lending guidelines in a way that excludes many small businesses.

Bank requirements include:

  • An extensive credit history and an excellent credit score, or you may not meet the new stringent guidelines for a loan.
  • An extremely detailed business plan outlining your past, present and future with this business, including what product or service your business offers, your target demographic, your competitors, and a marketing and sales plan.
  • A lengthy application that takes at least 30 days to process.
  • Tax records, bank records and all financial records for you personally as well as your business.
  • Collateral you can offer in case you cannot repay the loan.

Along with being difficult to obtain, the bank’s small business loan will lock you into a set monthly payment with no flexibility. If your business is new or a startup, you face bigger obstacles. According to Foxbusiness.com, many banks turn away requests for a startup loan because they require three years of business financial data to qualify.

Credit Unions

Credit unions are similar to a bank, except that they are nonprofits owned by their customers. This means interest rates may be lower and loan requirements may be slightly less difficult to meet.

But there are requirements that you must complete:

  • Before applying for your loan, you have to become a member of the credit union. This varies by credit unions, but typically it means having a checking and savings account with them.
  • To become a member you must meet their criteria. This could be that you live in a certain state or region. Members have something, usually location, in common.
  • Though less stringent than a bank, credit unions require you to prove your creditworthiness with a great credit score, solid credit history, a business plan, financial records and tax documents.
  • Approval times vary, but it can take 30 days or longer.

Small Business Administration Loans

The Small Business Administrations is a government organization that connects you with banks within their network. This means that the banks take on less risk because the SBA provides a guarantee that enables the bank to extend credit it normally would not.

According to Business News Daily, SBA loans have terms of 10 years to 20 years, giving your business more time to pay than other loan options.

But there is a downside to an SBA loan:

  • Because it is a government-backed loan, the application process is more intense than a bank or other lending institution.
  • Approval for the loan can take much longer, as much as 90 days.
  • You must provide all the application documents you would be required by a bank, plus your resume, your projected financial outlook for the business, and detailed information about suppliers or vendors you will do business with.
  • The SBA and the associated lender evaluates your application based on your character, collateral, management skills and what you can contribute to the business.

Working Capital Loans

A Working Capital Loan from Credibly is a small business funding solution that provides a flexible amount of funding with a short repayment period (6-15 months). Approval comes by filling out a simple application online and is not determined by your credit score, your detailed business plan, or your resume.

Other benefits include:

  • Approval for a Working Capital Loan is determined within two days and you can have money in hand within 72 hours.
  • Unlike the requirements of time and collateral that other lenders seek, this type of funding answers to immediate needs and is something you pay back over a shorter period of time.
  • A short-term Working Capital Loan may have a slightly higher interest rate than a long-term loan, but that factor is offset by the flexibility of getting the right-sized loan, without the need for a strong credit record.
  • You can apply online by filling out a short application and submitting a few bank statements.

About 75 percent of funding sought by relatively new business owners comes from alternative sources such as a Working Capital Loan, according to Entrepreneur.com.

Look to Credibly for alternatives to traditional bank loans; our funding solutions provide the terms and ease that support your business success. To get started, fill out our online prequalification request form. Submitting is free and easy and will not negatively impact your credit score.