Getting the money you need when you need it can be easier said than done. And while all small business owners must contend with strict underwriting standards and specific qualifying criteria, some will find it more difficult to obtain a loan than others.*
Here are a few common obstacles you may run into:
One of the first factors lenders will take into account is a business’s credit. Poor credit, whether due to late payments or simply not having a comprehensive credit history, can create a hurdle you may not be able to clear.
Outstanding judgments, liens or bankruptcies can hang like a dark cloud over your business, preventing you from obtaining the funds you need.
Lenders typically try to avoid certain industries, as they view them as riskier than others. If you operate in one of these industries, you may find that the funding you need is out of reach.
Traditional lenders will insist that a business demonstrate historical profitability. This may include tax returns, business bank statements, financial statements, cash flow projections or other documentation. If you’re unable to provide this paperwork, you could find yourself at a significant disadvantage.
If you attempt to borrow a business loan, most lenders will require you to secure it with collateral. If putting up collateral is not a possibility, it can throw a wrench into your borrowing plans.
Seeking a tailored solution
The simple truth is that many traditional lenders don’t make the small business loan market a priority because they have a harder time making money from these transactions. They’ve put strict guidelines in place to weed out all but the borrowers they know they can generate revenue from. And if a bank is less-than-invested in offering these types of loans, the chances that it will provide more flexibility to suit your specific needs are slim to none.
However, there are new, alternative lenders on the scene who approach the small business loan market differently.
Rise above challenges with LoanMe
No matter the obstacles you may face as a business loan borrower, LoanMe is on hand to help you overcome them.
LoanMe accepts businesses dealing with credit challenges. In fact, due to our commitment to reporting payments to the appropriate credit bureaus, you can depend on improving your credit through the simple process of repaying your loan.
We also fund all types of businesses, including sole proprietorships. This means you can count on obtaining the money you need regardless of the industry you operate in or the size of your business.
Additionally, you may be approved for a LoanMe small business loan even if you have tax liens and judgments. Simply apply online 24 hours a day, seven days a week to receive a pre-approval while online or on the phone.
Our application process is fast and straightforward, allowing cash to be wired straight into your business’s bank account in as little as one day.
With all costs clearly stated upfront and no hidden fees, you can rest easy knowing you’ll receive the business funding you need without the hassle that often comes with traditional loans.
*This article has been prepared for general information purposes only. The information presented is not legal, financial, tax or accounting advice, is not to be acted on as such, and is subject to change without notice. Credit approval is subject to LoanMe’s credit standards, and actual terms (including actual loan amount) may vary by applicant. LoanMe requires certain supporting documentation with each new application. If you have any questions regarding this, call us at 844-311–2274. California loans are made pursuant to LoanMe’s California Department of Business Oversight Finance Lenders Law License #603K061. LoanMe also offers loans in certain other states which may have higher minimum loan amounts. Copyright © 2015 LoanMe, Inc. All rights reserved.