Easy Small Business Loans Overview: How to Prepare Your Business for an Online Loan Application

Loans for small businesses aren’t known to be very easy to get – especially for start-ups. Online lenders have made it a bit easier for owners of smaller companies to apply for financial funding. There are solutions for equipment financing, inventory purchasing, participation in vendor programs, expansion, real estate, and more. Whatever your needs, you can use the internet to find easy small business loans.

Look for a lender that doesn’t have a long, drawn-out application process. The SBA has that problem, making it difficult for those who are just starting out, or who don’t have very good credit. However, if you do have bad credit, you still might only qualify for a secured loan, even if you use an online lender.

Never apply for a loan without first carefully understanding the repayment terms and interest rate, no matter how easy it might be to get. You don’t want to get cheated out by having to pay a lot of extra money over time. How much time will you be given to repay the loan, and what is the frequency of the payments you will be expected to make over that period of time?

Be careful not to borrow more money than required. What if you miss a payment and the interest rate goes up? You might end up paying back more money than it would have cost in the first place to pay out of pocket or with a credit card. While it might not be possible to calculate the exact amount you’ll need, have a financial advisor help you with the estimate. Don’t have one? Some online lenders actually offer free tools to help you with the estimate.

Show a Plan for Easy Small Business Loans

If you are able show how exactly the money will be used, and that you have a plan in place for paying the money back, then you will be more likely to be approved. Some lenders of easy small business loans will look at more than just your credit score. It is only one part of the entire picture, so even if it is low, you still might qualify for a loan if you are able to put together a good, sound business plan.

If you are going to be applying for loans online, check the website’s security policy. Ann of the sensitive data should be transmitted via SSL encryption.

Now that you have a better grasp of what to expect with online easy small business loans, it’s time to start looking for a lender that meets all of the criteria. US Business Funding is the place to start. With its 24-hour funding process, easy application, 95% approval rate, and flexible term / payment options, you can’t go wrong with US Business Funding.

Small Business Loans With A Poor Credit Score

Many small business owners struggle with obtaining business finance, and there is absolutely nothing unusual about this. Getting a business loan for small businesses, such as retailers, restaurants, garages and so on, is not as simple as one would think from the bank.

This is not to say however, that getting a business loan is not possible. It all depends on where one goes looking for the loan. Typically, there are two primary options that business owners have, approaching their local banks and going to a private funder or lender.

Banks and small business loans

Banks look at applications for small business loans from their perspective and their perspective is determined by their criteria. When we speak of criteria, there are numerous criteria and these are all non-flexible as well as stringent.

Typically, banks require high credit scores, which should be around about 700 or over. If a business applying for a loan with the bank lacks excellent credit, their application will be rejected simply based on that one criteria. In conclusion to banks and credit scores, business funding with bad credit with a bank is not a possibility.

This is not to say that there are not a number of other criteria, which banks follow carefully and take equally seriously as well. The criteria of banks have been established over the decades based on shared experience, and these criteria are across the board.

As is generally acknowledged, banks are not very keen on funding small business loans. The reasons for this are many and one of the primary reasons is that, small businesses are considered to be high risk investments from the banks perspective and experience.

Private funders and small business loans

With a private lender the situation is completely different from what a business owner will experience with a bank. Private lenders have a completely different list of criteria to provide cash advance for business owners.

As private lenders primarily offer MCA (Merchant Cash Advances), the criteria for these is simple. An MCA loan is an unsecured loan, and does not require high credit scores either. As a result it’s easy to qualify for this kind of funding.

However, many a small business owners don’t look upon MCAs from a friendly perspective, and they do have their reasons. The interest rates are higher than traditional bank loans, and most business owners want low interest rates.

The point with MCAs is however not to compete with bank financing, as they are both in quite different arenas. Apart from the fact that they are both financing for businesses, the entire process, requirements, features and all other details related to the funding are completely different.

With an MCA loan the question how to qualify for small business loans does not really apply. Only in very few cases are small businesses turned away by private lenders. Generally, most businesses receive the funding they require for their business.

MCA loans V/S bank loans

Merchant cash advances or MCA in short are generally accompanied with high interest rates. Far higher than what the bank provides, and the reason for this is these are unsecured short term loans.

There are many businesses who would never qualify for a traditional bank loan, regardless of how badly they need it or want it. If their credit scores are low, or if they are unable to provide the collateral the banks require their applications will be rejected. This is not to say that there are not a lot of other grounds on which small business loan applications are not declined by banks. Also, banks are under not obligation to provide funding to those they choose not to. This leaves many small business with no other option.

For an MCA loan a business requires nothing much in the way of credit scores and collateral. The basic criteria for an MCA loan is mentioned here, as follows. The business should be at least 12 months old and a running business. The owner of the business should not be in active bankruptcy at the time of the loan application. Finally, the gross income of the business needs to be at least $10 thousand a month.

The easy criteria makes it simple to obtain an MCA, and the drawbacks are definitely the interest rates and the duration for some business owners. However, those who capitalize on such business funding are those business who either have no choice, or those who require quick business loans. Some of the advantages are the processing time frames, which can be as little as a couple of days.