Traditional bank loans were once the only option for borrowing money for your business. Today, with many alternative financing options, you have more choices. Learn why you may not want to apply for a bank loan and use another type of funding.
It Can Be Tough to Get Approved For Bank Loans
Bank loans often take two to four weeks to move through the approval process, with another time frame to receive the money. This is the time that you are in limbo, unable to move forward with your business. When you need short-term financing, a bank loan isn’t always the quickest option.
It Can Be Tough to Qualify For Bank Loans
The bank loan process takes time, and there are many regulations the banking industry must follow. You need good credit, either personal or business. Your business must be stable. New businesses and startups don’t always qualify, which means you must use your personal credit to get a business loan. This can put your personal finances on hold. Your business must be able to demonstrate repayment. If you are experiencing cash flow issues, even with good credit, the bank may not approve the loan.
Rejection Can Slow You Down
If you’re trying to find finances for your business, once you go through the long approval process with a bank only to be told no, it can be disheartening. Instead of wasting time, look for better options that can help you when you need it.
Bank loans have their place in the business world, but not every cash flow problem needs a long bank loan. If you’re needing long-term financing, consider an SBA loan, which offers better terms and rates for small businesses. You do need your finances in order. Whitefish Funding features financing options beyond traditional loans. Contact us for more information to grow your business.