For every individual, getting a loan for their small business is a major hurdle due to the strict lending standards by banks and private loan providers. But getting a funding source is significant to start or grow your business or cover expenses, including inventory and payroll. We have outlined 5 Simple Ways to Get A Short-Term Business Loan quickly.
Getting a loan for a small business with relaxed lending standards can be difficult; to qualify for the loan, you need to prepare for these steps:
1. Ask Yourself, Why Do I Need This Loan?
Lenders ask this question frequently, and your answer should fall into one of these four categories:
1_To start my business
2_To manage my day-to-day expenses
3 To expand my business
2. Determine Which Type of Loan is Right for Your Business
The reason you provide for needing the loan will dictate the type of small business loan you get. If you’re a startup, the chances of getting a loan in the first year of your company’s listing are slim to zero. Lenders need cash flow to support repayment. So, if you are starting a business, you may immediately be disqualified.
Startups can do several things, like borrowing from friends and family, crowdfunding, and likewise. Here’s more information about startup business loans.
So, if you’re a startup, don’t worry; you can still get a loan:
BitX Funding (the loan provider for the past 20 years) has a startup business loan program, which grants loans $25,000 – $150,000 with 0% to 15%, the lowest annual interest rate APR. Tell your plans, and the organization will help you achieve your dreams. Check the startup’s loan policy here.
But if you need a loan for small businesses, then BitX Funding offers much more. Fund your account with $5,000 to $2,000,000 within 24 hours, and visit if you can qualify.
3. Conclude the Best Type of Small Business Lender
You can apply for loans from banks, nonprofit microlenders, BitX Funding, or other online lenders. These lenders offer different programs, including short-term business loans, lines of credit, and accounts receivable financing.
Once you have decided which type of lender is best for your small business, compare similar options based on the annual percentage rate. After comparing, select the one with the lowest APR (annual percentage rate).
4. Find Out if You Qualify
Your position on the credit spectrum is one factor that determines which loan you’ll qualify for. You can get your credit report free from www.nav.com. Banks need credit scores at least above 650 to qualify for bank rates, but BitX Funding has a deep bench of alternative lenders that can provide the funds to grow your business with a FICO score as low as 550. So, if your credit score falls below 550, consider taking a loan from friends and family.
5. Gather Your Documents
After comparing your options, it’s time to apply for small business loans that fit your financing needs. Consider applying for multiple small business loans within a short time frame with BitX Funding. You need to provide an application and three months of business bank statements to get fast approval and a quick offer. If your cash flow is strong, you will qualify for a short-term business loan of over $10K in monthly deposits.