Many business owners are turning to alternative lending options when they realize traditional banks have stringent and exhausting loan qualifications. Getting a small business loan should not require a stream of documents that have little to do with one’s ability to repay.
A great credit score is always helpful; however young businesses often experience peaks and valleys while they zero in on how to stabilize their revenue stream. A small business loan is often used to gain ground by expanding, thereby reducing or eliminating income fluctuations.
In truth, traditional financial institutions are more interested in larger, long-term commitments that result in a greater rate of return. Since underwriting costs for evaluating and processing larger loans are about the same as for smaller business loans, a traditional lender prefers to work with big businesses. It is in their best interest to deny a large percentage of SMB loan applications.
According to a recent survey, this is partially why over 80 percent of small businesses in the U.S. were denied financing by their banks. There are several other reasons small business owners are given for being denied. They pretty much run the gamut, ranging from having no business plan to poor personal credit. The bottom line is banks prefer not to invest their time or money in ventures that are viewed as high risk and low return.
There are no real advantages for going through the laborious process of getting a small business loan from a bank. Each financial institution has its own criteria, so shopping around is important – yet who has the time? Generally-speaking, you must have good business and personal credit a detailed business plan, tax statements, income statement, balance sheet, accounts receivable, a positive cash flow, minimal (or no) debt, a personal financial summary, and possibly collateral.
Small businesses are better off considering more suitable options.
When you need a business loan for less than $250,000, direct funding is the most expedient and efficient route to take. It may surprise you to learn that interest rates are competitive and sometimes lower than that which a bank offers. Plus you will receive personalized service without having to jump through hoops to finalize your loan. In other words, you can get what you need when you need it even if you have only been in business for a year.
A big advantage non-bank lenders have is that they don’t have the burden of providing a full array of financial services, so they excel at funding loans. The sole purpose of a non-bank lender is to approve loan requests based on a fraction of the information traditional lenders require.
When you review the funding options side-by-side, it’s easy to understand the shift in popularity of working with a direct non-bank lender.
Greenbox Capital vs. Traditional Banks & SBA
|No Hard Collateral||✔️||X||X|
|High Approval Rate||✔️||X||X|
|Quick Funding (24 hrs)||✔️||X||X|
We understand how stressful it is to wait for a response to a loan request, so our technology is set up to process most loans in less than 48-hours. In fact, many approvals are made in 3-5 business hours.
We know you will love our “smart phone capable” system! Our process is so streamlined, you may never even need to speak with a loan representative. We are committed to satisfied and happy customers, which will be evident the minute you get started.
Our goal at Greenbox Capital is to provide comprehensive pro-grade loan servicing from start-to-finish. We hope you’ll select us for all of your business funding needs. Start today by filling out this form to see the amount for which you qualify!
Greenbox Capital is a non-bank direct lender that specializes in providing funding to all types of businesses: Manufacturing, Construction, Pharmacies, Physicians, Retail, Gas Stations, Dry Cleaners, Day Care centers, Law Offices, Dental offices, Restaurants, and more.