What Banks Don’t Tell You About Loans

As a business owner, you always need to be thinking of new ways to get ahead of the competition, fix issues as they come up and improve your operations. To make this a reality, you will need to get a business loan.

Having additional financing can help you get your business to the next level in many ways. It is important to consider different products, lenders, and opportunities when seeking financing options. It is important that you are well-informed about the application process, finance options, and overall approach. In this article, we will share a few things that a bank might not tell you about taking out a loan. We will also explain how many alternative finance companies are able to provide the customized working capital that your business needs.

Application Process

Often times banks might not be completely up-front about the duration of their approval procedures. Banks look at a number of qualifications such as your business’s credit history, collateral and the size of your business and other factors. They will likely request to see your personal and business financial statements, business plan and potentially cash flow forecasts for a certain length of time. All banks are different and may require more stipulations in addition to the ones mentioned.

Even knowing this, there is no guarantee that you will be approved for a business loan. You might be waiting weeks or even months to the application process, you can still find yourself without additional working capital. Most alternative lenders will be able to ensure that you receive an approval status within a week or less.

Alternative Options

Loans are not the only types of business financing options available. For example, merchant cash advances are a popular form of financing as well which is a purchase of your business’s future receivables. This product is beneficial for businesses who receive most of their payments via credit cards. Banks specialize in loans which means they will not tell you about other products that could be a better fit for your business.

Flexibility

Many banks do not prefer to give out loans in small amounts. They prefer to give larger summers because the smaller ones are not worth their time. This means that if you need a bridge loan to get you through an upcoming project, or simply do not need a large amount you might be out of luck. Instead of applying to banks, reach out to a working capital lender. They will be able to provide you with flexible financing and terms that are in-line with your business’s goals.

Customer Service

Most banks do not dedicate their full attention to helping your business due to the large customer volume. You do not want your business to be just a number, you want to be helped and have a quick turnaround. Most banks will not be able to promise this kind of service which is why researching other finance companies might be a better option for you.

The Bottom Line

Before you waste time applying for a loan from a bank, contemplate the consultative service you could receive by applying for working capital from an alternative financing lender. Needing money for your business can cause major tension; so why not alleviate that pressure by applying to a lender instead of a bank. Your application process will be shorter, and you will have a better experience.