Alternative Lenders Are A Different Standard Of Business Financing!
Business lending has never been more difficult in the world of traditional business loans. Only a scant 1% of all SBA loans are approved, and government officials recently announced that they would be cutting funding towards this program. Banks, knowing that they often hold the key to important milestones in business, also have gotten stricter about lending guidelines. In order for a typical business to get an SBA loan, they often will require most or all of the following qualifications...
- A Personal FICO Over 700. Most business owners do not have a personal credit score that's very good, and this is often an instant disqualifier for most beginning business owners. It's unfair, but they're allowed to do it.
- Minimum Of 3 Years In Business. If you're a new business owner, you're out of luck. Banks typically won't lend to people who don't have a proven track record. As a result, if you're new to entrepreneurship, you're not likely to win a loan.
- A Minimum Monthly Income Of $100,000. At a very bare minimum, businesses will want to see an income of $100,000 per month before they allow you to get a business loan to support your business growth. Small businesses are outta luck.
- A Serious Down Payment. Most banks will not issue personal or entrepreneurship loans without down payments. If you are fresh out of debt, then you are also fresh out of luck.
- Collateral. This is the aspect that makes most financially smart business owners think twice about borrowing. Most banks will require collateral agreement involving a high value item. Most of the time, it's business equipment or the business owner's home. If the business owner fails to make ends meet, the banks can repossess the home or business equipment, leaving the borrower destitute.
Simply put, most companies today will not fit the mold that bank lenders want them fit. As a result, they no longer are able to qualify for the loans that they so desperately need. It's unfair, and it's actually affecting the current US economy.
The easiest way to deal with the disparity between bank standards and new businesses is to go to an alternative lender. Alt lenders, such as those who provide merchant cash advances, only need two major qualifiers. As long as you've been in business for at least 3 months and have customers who buy from you using credit cards, you're able to qualify.
At Red Payments, we offer low interest business financing that are tailored to your specific needs. We also boast a generous approval rate. Curious to find out more? Give us a call for a quick, no obligations consultation to find out if cash advances are right for you.