Best Friendly Lenders for Low-Income Businesses
If you’re an owner of a low-income business, you may find difficulty applying for a loan from traditional banks. However, these days, you may find many friendly lenders who are ready to provide loans to small and low-income businesses.
Most lenders have realized that the workforce is growing and it is in their benefit to offer flexible and friendly lending options. Even banks have reported an overall increase in small business lending over the years. However, it is also important to first consider the type of loan you want to apply for.
Whether you’re a startup or a low-income business, this post will help you choose the best friendly lender for your company. Following is a list of the best friendly lenders for low-income businesses:
Fundation – Best Working Capital Lender
Fundation is a good choice for those low-income businesses that are looking for working capital loans. The annual rates offered by this lender are low and range from 7.99 to 29.99%. You can apply for the loan, and the approval will take place quickly, even as fast as 24 hours. However, to qualify, you must have a business for at least two years and an annual revenue of at least $100,000. This amount of annual revenue is considered as a low-income one, and Fundation offers good customer service and lending options to such businesses.
Kabbage – Best Direct Lender
Kabbage is one of the friendliest lenders and can provide around $150,000 almost immediately after you’ve applied for a loan. It offers a good option to low-income businesses that can’t meet the strict rules and requirements of other banks and lenders. If you need money within a short duration, this option is the best as Kabbage is a friendly lender and has no strict rules for qualification. This lender, however, checks other channels that you use for your business such as Amazon, Yahoo, and eBay. You must also have a PayPal account to apply for the loan.
OnDeck – Best Bad Credit Lender
If you need to apply for a bad credit loan, you should consider getting one from OnDeck. To apply for the loan, you must have an annual revenue of $100,000 and the business for at least one year. This lender offers loans at a fixed rate, and the amount can go up to $50,000. The business owner can pay back the loan on a daily or weekly agreed term, and the time period can be extended up to 36 months too. The application for funds is an effortless process, and you can apply for the loan on phone too. Within 24 hours of your application, you will get the requested amount of loan.
Accion – Best Startup Lender
If you have a startup company and are looking for a friendly lender, you must consider Accion as it provides loan to companies operating for as less as 6 months. The minimum requirements and loan amount vary according to the states, but the minimum credit score for applying for the loan is 575. The amount of loan can range from $10,000 to as high as $100,000. As a business owner, you can apply for the loan online by filling a form, and the approval will take less than one month to be fulfilled. Loans provided by Accion are mostly paid over a monthly basis and the annual percentage rates start at around 10.99 percent.
Prosper – Best Peer-to-Peer Small Business Lender
As a low-income business owner, you can easily apply for unsecured personal loans from this lender. This lender will also be a good choice if you’re considering getting a small amount of loan, that is, around $35,000. This type of lender also provides loan to businesses that don’t have any particular track record of their performances. If you have a low-income business and need a small loan, you can apply for a loan from this lender as it is one of the largest peer-to-peer lenders. To apply for the loan, you don’t even need to show your revenue. You will easily get a small amount of loan for an agreed payback term.
Low-income Business Conclusion
As a low-income business, you might not be the perfect candidate for all lenders, but the lenders listed in our post are the ones that can help startups and small businesses acquire loans. If you have an established small business, you can get loan from other reliable lenders too, but if you are a startup or a low-income business owner, only a few lenders will be ready to accept you as a candidate. Always pick a lender after thorough investigation and make sure that it meets your funding requirements properly. You must also consider the payback amount and time period when you apply for a loan.