Increase Your Chance of Getting a Business Loan
The economy has had its ups and downs recently, but seems to be improving. This may be a good time to consider expanding your business and hiring more employees. Since all your money is already invested in your company, chances are you will need to take out a loan. This may prove easier said than done. In this questionable, albeit recovering economy, banks are still hesitant to lend money to businesses with less than stellar credit.
When major banks won’t lend you money, it’s time seek help from alternative funding institutions for example credit unions, peer-to-peer lending and other specialized lending organizations. With these lenders, approval is easier than with the traditional banking establishment, although certain requirements still must be met. Usually a simple application is all that is required for alternative lenders.
One alternative form of funding is the Merchant Cash Advance, very popular with retailers and restaurants that do a high volume of credit/debit card business. With credit card receipt financing, small business owners can get almost immediate and, more importantly, unsecured cash advances. There are no personal guarantees or collateral pledges on home or business. The usual method of repayment is by automatic withdrawal of a percentage of your daily credit card sales. This works in the merchant’s favor as, on slow days, a lesser amount is withdrawn. The down side to this type of funding is that, although money is lent and paid back, the transaction is never reported to any of the credit bureaus.
Another form of funding is a loan from an alternative funding company. These short term working capital loans can be obtained quickly and with a minimal amount of paperwork. The repayments are reported to the major credit bureaus,thus helping to reestablish a good credit rating. The loan is also tax deductible. The repayment term can extend for up to 18 months and after the loan is paid down to a certain percentage, refinancing is available. Again, there is no additional collateral required to secure a loan.
Here are some ideas to help improve your chances of approval:
- Improve your credit history. Traditional financial institutions weigh this very carefully when considering lending money.
- Contact the Small Business Administration or other like agency and speak with a lending specialist or counselor.
- Create a solid comprehensive professional plan, showing you have done your homework.
- Show plans on how you intend to repay the loan.
- Establish good relations with your lender.
Following these tips will increase your chances of getting a loan and along with interim alternate financing can help repair your credit.
Also check with Liberty Capital Group, Inc. – the company that specializes in providing various types of funding for small to medium sized businesses. The underwriting specialists can help you get the financing you need in a timely manner and speed you on your way to a better credit standing. Contact Liberty Capital Group today @ (888) 511-6223