While the small business lending atmosphere has been improving in the last few years, it is still a chore for these businesses to secure the funding they need. At first glance, traditional bank loans seem like the most obvious method of financing. However, more than 82 percent of small business loan applicants are denied business funding by banks.
Banks have strict requirements that make it very difficult to be approved. Applicants must have a stellar credit score and collateral. Seemingly endless financial statements and records and a certain amount of time in business requirements also make the process lengthy and burdensome. If the applicant has a history of bankruptcy, poor or no credit, or is a high-risk business type or industry, the answer will likely be a prompt “no”. If the application is processed, many businesses wait weeks or months only to hear they’ve been denied for funding.
During that time of waiting, the business has slipped into a deeper financial hole. The funds they seek could be helping the business meet day-to-day expenses, cover payroll and boost cash-flow. Business growth opportunities could come and go. Once they’ve been denied, the business is not only back to square one, but it could also find itself in a dangerous cash-flow situation.
Alternative Small Business Loans
More and more small businesses are choosing to bypass the bank altogether for a faster, more flexible option – alternative small business loans. This source of cash can be secured through an alternative provider like First American Merchant. As a high-risk provider, FAM has years of experiencing in working with businesses banks shy away from. The following are just a few of the benefits of working with FAM:
- Credit Scores Below 500 Approved
- Receive your Funds within 72 Hours
- Simple, Flexible Programs
- No Tax Returns or Financials Required
- Fast Application Process
- Easy Collections Process
- High Approval Rate
The biggest advantage of this option is the speed in which you receive cash. Your business can have an account setup and receive funds in as little as 72 hours. You can easily cover your expenses and payroll, take advantage of opportunities when they arise, purchase new equipment and inventory and even create a cushion of cash. Your business gains stability, without the hassle. Documentation requirements are minimal, since this funding is based on your business’ performance not time in business or financials. Poor or no credit is also not an issue.
First American Merchant understands the challenges high-risk business models face and have developed the perfect cash solution. Automotive repair, auto sales, medical and dental services, furniture, hotel and motel, home improvement, restaurants, services training, transmission repair and veterinary services are a few of the industries FAM provides alternative small business loans to (and banks typically categorize as “high-risk”). If you are tired of waiting to hear back from the bank or would like to avoid that route altogether, consider the benefits of partnering with FAM’s team of experts.
To learn more about our business funding options, get in touch with us today.Get Started Now