Finance is the very fuel of any business. If you don’t have funds, no matter which industry you are in, eventually it will shut-down. So what can you do to get the loan or finance you need?
Should You Go to Bank or an Alternative Lender?
Let’s see the differences between borrowing from bank and from an alternative lender.
Whether you want a line of credit or term loan, you will have to first get it pre-approved. Banks have stricter norms than alternative lenders.
- A bank may lend you if you have been in business for the past few years. They may also ask you to submit a business plan, besides asking for a high credit score. Furthermore, you may have to provide collaterals against the loan.
- An alternative lender may be flexible while offering a loan. They may not need any business plan, and even if you have been in the business for six months or more, you can get the loan.
Costs and Fee
Every lender has its way of charging for the services that they provide.
- A bank may charge you a higher fee as they are a large organization who has to comply with regulations.
- Alternative lenders refrain from charging you a high fee.
- A bank has a lengthy process, and even after providing all the documents, you may have to commute to the bank to discuss issues. It may well take more than two-to-three weeks or more to get the funds.
- Alternative lender has an advantage over the banks. You can apply online. In most cases, it may not take more than 24-hrs to get the funds in your business bank account.
Here Are 4-Steps to Get the Desired Loan from AdvancePoint Capital:
Step-1: Discuss the Business Need of Funds
You will have to first fill the pre-approval form online. Then you need to discuss your business and have clarity on why you need funds. There are eligibility requirements which need to be met.
- You need to be in business for a minimum of 6-months. A start-up business is not eligible for business loans which means you need to run your business successfully for more than six months before you can start seeking loan.
- You may have apprehensions about the credit score. You need to discuss it. But in all probability, you will hear that all the credit types are considered from excellent to poor.
Then you need to discuss your exact finance need as well. There are whole lot of services which are provided by an alternative lender. You can go for a small business loan, a business line of credit, equipment leasing, merchant cash advance, equipment loan, business capital loan, equipment financing, invoice factoring, and another form of funding.
Step-2: Fill The Online Application Form
You will not take more than a few minutes to fill the one-page application form. It will ask for details like amount requested, monthly gross sales, time in business, business and personal details. Then you will have to complete the paperwork for the service you take.
“Example: Business loan for USD 200,000 for 2 yrs.
Paperwork: Business Bank account, credit history details, years in business details.”
Once you have made an application with all the paperwork, you will get a reply within 4 to 6 business hours. An alternative lender has a high approval rate, and there is no fee either.
Step-4: Get Funds
Once the loan is approved, the funds are wired into your company’s bank account the day approval comes. Usually, you will get the funds within 24-hrs of making an application.
Want Funds Now?
- Click here for application
- Wait for approval
- Get funds in your business bank account.
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