Tag Archives: Are Business Loans Hard To Get?

Are Business Loans Hard To Get?

Business loans can be hard to get, especially if you own a start-up or a small business. A bank doesn’t offer loans to all business owners and they see the funding of smaller businesses as a higher chance of a risk being involved. On-deck recently conducted a survey about statistics related to small businesses being denied loans by banks and the results turned out to be a whopping 82%.

One of the reasons why banks deny small businesses loans is because most small business owners may find it difficult to offer collaterals in comparison to larger businesses. Another reason is that the process of approving and providing small and large loans is the same, which is why they focus on catering to clients who need larger sums of money.

Even if an individual wanting to take a loan for a small business (typically less than $2M) has great credit and a concrete business plan, there is no guarantee on getting his loan approved from a bank, especially if they don’t have tangible assets.

In order to get a small business loan, you should know whom to approach. There are a lot of lenders other than traditional ones who are willing to fund borrowers who need fairly smaller amounts of money to kick-start their business.

Business Loans from Business Loan Lenders

There are a few lenders in the market who offer loans specifically to those individuals who need less than $2M to get their businesses running, and start-ups are funded without having to go through much hassle.

These loans are specifically meant for business owners who are denied finances from traditional lenders. It is fairly easier to get funded from such lenders since their demands are very few. Most of them ask for very basic documents which makes getting funded easy.

Business loan lenders such as BusinessCapitalUSA require minimal documentation and criteria to be followed in order for one to get a loan from them. Along with that, they offer various advantages that a traditional lender won’t, including:

  • Online applications- this makes applying for a loan a quick and an easy process. You don’t need to go around hunting for the right lender, waiting in long queues or going through long application procedures that can take hours to deal with. You can apply from at a time and place that’s convenient to you while concentrating on your business instead of where to get a loan from.
  • An elaborate business plan is not required. Basic details regarding one’s business may be asked for just to be sure that the borrower is legitimate. Blue prints, scope, and other unnecessary statistics or information isn’t required.
  • Got anything less than excellent credit? You can still get funded without worrying since that is not a requirement.
  • Collaterals are not asked for which is probably the biggest benefit of the lot. This advantage helps a lot of professionals start their businesses without hesitating about not being funded due to the inability to offer security.

Not everyone today is blessed with the best when talking about finances. Some people may have the capability of starting a business all by themselves and may be confident about succeeding. Nobody should be deprived of loans only because they do not have something good enough to offer as collateral.

However, one must be aware of the fact that such loans demand a higher rate of interest as compared to business loans that you get at banks. That’s basically because the other advantages that they have to offer are plenty which is a plus point for anybody who is willing to spend a little more on a loan that has such benefits.

If you are confident about being able to repay a business loan from a direct lender with the particular interest rate that they charge you and haven’t been granted a loan from a bank for your business, then going ahead and applying for such a loan will do you no harm. However, keep in mind that if you aren’t too sure about being able to pay back the borrowed money on the dates agreed upon by your lender and you, think again before burdening yourself with debt.