{"id":5238,"date":"2016-08-18T18:39:19","date_gmt":"2016-08-18T18:39:19","guid":{"rendered":"https:\/\/www.arffinancial.com\/development\/?p=5238"},"modified":"2023-11-06T14:40:24","modified_gmt":"2023-11-06T19:40:24","slug":"small-business-lending","status":"publish","type":"post","link":"https:\/\/www.arffinancial.com\/development\/small-business-lending\/","title":{"rendered":"Small Business Lending: Changing Trends You Need to Know About"},"content":{"rendered":"

A common misconception is that banks are the best option for\u00a0obtaining a small business loan.<\/p>\n

Most business owners quickly find out that the process of obtaining a\u00a0business loan through their bank is nearly impossible. \"obtain<\/a><\/p>\n

Why Banks Are Notoriously Difficult to Work With<\/h2>\n

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, have a pristine credit score and be willing to wait months to hear back on an approval. \"business<\/a> 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.<\/p>\n

Are There\u00a0Alternatives to Bank Loans?<\/h2>\n

For many years the only\u00a0viable alternatives to a bank loan\u00a0were: dipping into personal savings, asking family for a gift or turning to a\u00a0merchant cash advance. Many\u00a0business 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\u00a0and often charge predatory rates –\u00a0including APRs up to 200%! \"upset<\/a> 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.<\/p>\n

Obtaining a Working Capital Loan<\/h2>\n

Today the alternative lending space has opened up and cash advance companies are not the only ones in the game. Now\u00a0you 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. \"happy<\/a> For example, obtaining a Working Capital Loan<\/a> through ARF Financial is straightforward, simple and fast.<\/p>\n