When you think of business funding companies, you are probably thinking about traditional financing institutions. Large banks, community banks, credit unions and such definitely do offer business loans. However, if you are a small business, you may need to think outside of the traditional funding box a bit.
Business Funding Companies Come in Many Forms
There are many different options when it comes to funding your business. There are private lenders, which you may have heard referred to as alternative lenders. There are cash advance options which are bad news on all fronts, but especially for funding a business. What you probably haven’t heard of however, is the small niche of business funding companies that do more than just offer business financing. In addition, they offer help improving fundability. This may include consultation, coaching, educational opportunities, and more.
These companies not only help you find the financing you need now, but they can also help you improve business credit and fundability so that you qualify for more and better funding throughout the life of your business.
Find out why so many companies use our proven methods to get business loans.
Business Funding Companies: Credit Suite
This is exactly what Credit Suite does. A business credit expert will consult with you to help determine where you currently stand in regards to fundability. Then, they can not only help you find the best business funding for you now, but they can help you improve your fundability to ensure you qualify for even more funding, with better terms!
A business credit expert can help you in ways you probably do not even realize. They have an inside track to what lenders are actually looking for. They can also help you steer clear of predatory lenders, which are all too prevalent in the world of business funding companies. These experts are also aware of which lenders report to business credit reports to help build business credit, which ones do not require a person credit check or guarantee, and more.
Working with a business credit expert will save you time, and in the long-term, money. The cost far outweighs the benefit, and you definitely get a bigger bank for your buck.
Business Funding Companies: Alternative (Private) Lenders
The vast sea of alternative lenders is hard to swim in. It is full of sharks that are searching for easy prey in the form of small businesses that need money. If you aren’t careful, you will get swallowed up quickly. Unfortunately, the industry is wrought with predatory lending practices.
The key is to find a legitimate business funding company that fits your current needs. A business credit expert is the best way to do this, but here are some good options from U.S. News and World Report to give you an idea of what is out there.
As with all loans, rate, fees, minimums, maximums, terms, and other details can change without notice Be sure to check with the lender directly for the most up to date information.
BlueVine
Loans are available from BlueVine up to $100,000. Annual revenue must be $120,000 or more and the borrower must be in business for at least 6 months. Your personal credit score has to be 600 or above. It is important to note also, that BlueVine does not offer a line of credit in all states.
Funding Circle
At Funding Circle, borrow up to$500,000. Decisions come in as little as 24 hours, and you can get funding in as little as 5 days. Repay on terms from 6 months to 5 years.
Funding Circle’s rates start at 4.99% per year. There are no prepayment penalties, there are also relatively fast decisions and funding.
They do have a ton of fees, including for origination, missing payments, and insufficient funds. Also, some maximum rates are high!
OnDeck
Obtaining financing from OnDeck is quick and easy. First, you apply online and receive your decision once application processing is complete. If you receive approval, your loan funds will go directly to your bank account. The minimum loan can be up to $500,000.
Find out why so many companies use our proven methods to get business loans.
Just like any other online lender, they do have certain requirements to qualify for a loan. For example, a personal credit score of 600 or more. Also, you must be in business for at least one year. Annual revenue must be at or exceed $100,000. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements.
Rapid Finance
Rapid Finance offers a couple of different options. Which one is right for you will depend on a number of variables.
Small Business Term Loans
These range up to $1 million in funding, with terms from 3 to 60 months. Your business needs to be generating revenue to qualify.
You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, and the last three statements from your business bank account.
Merchant Cash Advances
You can get up to $500,000 in funding. In a merchant cash advance. This is funding based on your average daily credit card sales.
You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, your last three credit card processing statements, and the last three statements from your business bank account to apply for this.
Bad credit is no problem with this type of funding because typically, repayment is taken directly from credit card sales.
Credit Line Hybrid: Out of the Box Business Funding
In addition to the lines of credit, merchant cash advances, and invoice funding that many alternative lenders offer, you might also try a credit line hybrid. This is unsecured business financing. It is also no-doc financing. That means you need no collateral and you do not have to turn in any financial statement documents like bank statements or check stubs to qualify.
Find out why so many companies use our proven methods to get business loans.
You do need a 680+ credit score and there are a few other requirements. However, if you don’t meet them all you can choose to use a credit partner. This could be a friend, family member, or partner that does meet the requirements. You can use their good credit to apply for the credit line hybrid, but the payments would still be reported in the name of the business thus building business credit.
Business Funding Companies Are Not Always What You Think
It’s not always about a bank or a credit union. You may need to think outside the box for a number of reasons. Maybe you want an option without collateral. Maybe you want to use non-traditional types of collateral such as invoices. Perhaps you do not qualify for a loan at a traditional bank.
Whatever the reason, there are a number of options, and sometimes alternative lenders are the answer. However, this industry has a fair share of predatory lenders. The best ways to avoid the sharks is to work with one of the business funding companies that can help with more than funding.
The business credit experts at a company like this offer not only help finding the perfect funding for your needs right now, but also can help assess and improve business credit and overall fundability.
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