How to Get Money Loans for Your Business

2015-04-02

Jeffrey Bumbales

Your small business isn’t so small to you. Chances are, it’s not cheap, either. Keeping steadily afloat from one day to the next might be challenging sometimes, so it’s good to know that you have a choice.

The problem with a traditional loan is that it might not truly suit your needs. While bank loans are the classic method for acquiring much-needed cash, many other financing options have been created to better meet the needs of small businesses.

Now that there are funding options for any need and situation, you should be more diligent in how you identify and apply.

Think About Why You Need The Money

Are you running short on working capital or payroll? Has a pricey piece of equipment given up on you?

Some things need immediate attention and you won’t always have time to gather all of the necessary paperwork and collateral documentation. In these situations, waiting on a traditional bank loan will prove to be more costly than paying a higher interest rate for more immediately accessible capital.

If you don’t have a clearcut reason and only want a bit of a buffer in your account, Ty Kiisel, contributor for Forbes, suggests that a traditional lender might not be anxious to help.

With alternative lenders, you have access to money right when you need it, and for whatever reason you need it. There’s no collateral required, and a one-page application is all that it takes.

Consider Which Terms are the Most Favorable

Any time you get much-needed cash from an outside source, it comes with terms of repayment. For example, Chad Brooks explains at Business News Daily that with an SBA loan, your terms will vary depending on which of its lending partners issues the loan.

With this type of traditional financing, your terms might spread out over months or even years. And while that might make for smaller monthly payments, there’s long-term interest to consider (and debt against the business).

If your business experiences seasonality or inconsistent cash flows, it may become difficult to keep up with fixed payments during slow months. Also, this isn’t a good option if speed is critical as it typically takes even longer than a bank loan.

Remember Your Credit History

Anyone who has ever applied for a loan knows the stress of waiting on a credit decision. When credit isn’t spotless, the terms of a traditional loan won’t be forgiving (if approved at all).

Credit approval is an integral part of most loan processes and if the loan approval comes through, poor credit can mean sky-high rates. Fortunately, some lenders look beyond your credit history and focus more on the profitability of your business.

At Credibly, our funding solutions consider the financial fitness of your business instead of whether you have AAA credit.

If you’re ready for a short-term working capital loan, pre-qualify now and see how much funding Credibly can help your business access. It’s free and easy and won’t hurt your credit.