Small Business Lending: Changing Trends You Need to Know About
A common misconception is that banks are the best option for obtaining a small business loan.
Why Banks Are Notoriously Difficult to Work With
Obtaining a business loan from a bank begins with a a list of to-do’s that can take hours or days to complete. Often you must include a business plan, put up collateral, have a pristine credit score and be willing to wait months to hear back on an approval. This process for receiving money isn’t realistic or ideal for most small business owners who often need access to capital quickly to purchase inventory, buy new equipment or start an expansion project.
Are There Alternatives to Bank Loans?
For many years the only viable alternatives to a bank loan were: dipping into personal savings, asking family for a gift or turning to a merchant cash advance. Many business owners were forced to work with a cash advance company when they needed a quick loan. Unfortunately cash advances aren’t regulated by the government and often charge predatory rates – including APRs up to 200%! Cash advance companies also require the total loan to be paid back within 6 to 9 months and take their payment directly from credit card receipts until the total amount due is paid back. While waiting months to hear back about a bank loan application isn’t great, working with a cash advance company is hardly ideal.
Obtaining a Working Capital Loan
Today the alternative lending space has opened up and cash advance companies are not the only ones in the game. Now you can browse loan options from a variety of alternative lenders and find out what information is required for qualification from each. Lenders are starting to look at more than basic numbers when considering approval, making the process more friendly to companies in less-than-perfect financial situations. For example, obtaining a Working Capital Loan through ARF Financial is straightforward, simple and fast.
- Less than perfect credit is not a barrier
- Collateral is not required on amounts up to $725K
- Terms up to 36 months are available
- There is very little paperwork to complete
- Approvals are granted within 48 hours!
The best part about working with ARF Financial is that you are actually receiving a real bank loan. ARF Financial leverages its relationships with banks across the country to get you the financing you need. Because you’re receiving a real bank loan:
- Interest is tax deductible
- Payments and interest rates are fixed
- Repayment is not linked to your credit card receipts
This collaboration between banks and ARF Financial allows small business owners to receive affordable financing quickly. Contact us today to speak with a representative in your area about obtaining a Working Capital Loan for your small business.