What’s Considered a Small Business Loan?
Any loan specialized exclusively for small business use is considered a small business loan.
Ironically, you don’t need to own a small business in order to obtain most of them. This excludes loan types such as SBA loans, which can only be obtained by small business owners.
Why Use Alternative Financing?
Small business owners need a dependable source of funding in order to take on any opportunity, and solve any business challenge.
From taking on more customers, to hiring more staff, to purchasing materials, fixing broken equipment, managing payroll, to getting working capital in times of interrupted cash flow, at some point every small business needs help optimizing their operations.
Using your personal finances and business profits is one choice. However, most small business owners wind up switching to borrowing capital for several reasons, including:
How Do You Qualify?
All you need to qualify through EasyLoanHelper is;
However, qualifications will vary depending on the type of lender providing them, and the type of business loan you need.
For example, in order to qualify for an SBA loan, you will need:
Approval Difference Between Banks and Alternative Business Financing
Generally speaking, the better your business financials and credit score, and the longer you’ve been in business, the lower the small business interest rates will be, and the more desirable your terms will be. Since there are no federal regulations that set fixed qualification standards, it is up to the banks and other lenders themselves to create their own set of requirements for approval.
Traditional lenders including banks are known to set generally higher standards for approval. While this results in financing options with more desirable terms, it also means that the vast majority of small business owners do not match these requirements, and thus are denied funding. Choose alternative business financing for easier approval, with financing options that offer the same (if not better) terms than banking and traditional lending offers.
What Are the Interest Rates?
Interest rates vary depending on the type of financing acquired. The two most common types of rates include annual percentage rate and factor rate, although many other interest rate types are also offered via alternative financing. Factor rates are the most common type of interest rates among fixed-rate business loans. These are represented by a fixed decimal number, which sets the rate for the lifespan of the business term loan.
Annual percentage rate, or APR, is represented by a percentage. This percentage fluctuates depending on the amount drawn from financing options such as a credit line by a business owner within a given year. APR rates provide more control and planning opportunities for business owners to determine how little or how much they pay in interest. Factor rates, on the other hand, give business owners a more solid and consistent knowledge as to exactly how much they will have to pay within a given time.
There are, however, options that do not follow interest rates at all. These include merchant cash advances, in which a fluctuating portion of sales are used to pay off a lump sum of money, given to the business owner in advance. SBA loan rates, on the other hand, are largely bound generally lower government prime rates. With such a wide spread of different rates to choose from, speak to an advisor before moving forward with rates you aren’t completely comfortable with.
How Hard Is The Approval Process?
This answer changes depending on the channel you seek financing through.
90% of the clients who apply through EasyLoanHelper and our partners get approved, due to our simplified process, and easier approval qualifications.
In contrast, banks are typically the tougher type of lender to get funding through due to approval requirements that most entrepreneurs cannot meet.
They are also a much slower at processing funds, due to more banking regulations and institutional paperwork requirements.
Alternative business lending allows for expedited processing with minimized paperwork and less red tape, resulting in business owners gaining access to funds in a fraction of the time taken by traditional lenders.
How to Get Approved with Bad Credit
Getting approved with bad credit through a bank is nothing short of impossible.
On the other hand, independently set standards by EasyLoanHelper and our partners allow for the approval of all credit profiles, regardless of how low small business FICO scores may be, and how blemished their financial histories.
Information Needed To Start The Application Process
All you need to include in your application is:
After that, a Business Financing Advisor will contact you to learn more about you and your business, and will consult with you in finding the best loan for you and your business goals.
With a FREE, easy and frictionless digital application in less than 60 seconds.
your Business Financing Advisor, who will reach out to learn more about your goals, and answer any questions.
with one (or several) lenders available in our 75+ Lender Marketplace to find the best offers (lowest rates, highest amounts, and best terms).
offers tailored to help your business grow in real time, and choose the best one for your business with guidance from your Business Financing Advisor.
in as little as a few hours, and get back to what's most important: growing your business!