Should I Consider Alternative Business Loans for My Small Business?

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Alternative business loans have more flexible credit demands, easier applications, and potentially faster access than conventional bank loans. This alternative financing of businesses includes everything from short – term working capital loans to long – term commercial property loans. Alternative corporate loans are ideal for companies which cannot qualify for traditional loans or which need money fast. BitX Funding is a good solution for small enterprises to search for an immediate small company loan as they are a marketplace for small business loans. BitX Funding lenders require 550 or higher credit ratings and can receive up to $ 500,000 in as fast as one business day.

Alternative Business Loans Are Best Suited For:

We have determined that alternative business loans are the best small business loans for debtors that may have a difficult time meeting the requirements for traditional bank loans for various reasons. These alternative business loans have no strict credentials, often offer faster funding and are often used as startup business loans.
Some of the key factors that we assessed on these alternative business loans are:

  • How long does your business needs to be operational before a lender will offer you a business loan?
  • The minimum credit score that you need to have to be eligible for a loan.
  • The length of time that it takes from applying until you receive the funds
  • The overall amount of money that the loan will cost you during the term of the loan

While the types of business loans, that we assessed all vary ominously in their qualifications and potential uses. The key factors that we considered when evaluating these alternative business loans were their qualification requirements how fast the business loans fund, and the overall cost of capital for each loan option.

Short-Term Alternative Business Loan

Short-term alternative business loan provide quick funding of up to $500,000. They are easier to qualify for, can get funded more quickly, and have shorter repayment terms than medium-term alternative business loan. Repayment terms for short-term alternative business loan typically range from three to 24 months, and annual percentage rates (APRs) ranging from 30% to 50%.

Short-Term Alternative Business Loan Recommendations

The restrictions for short-term small business loans are slightly less than mid-term business loan. Generally, a lender will require that your business has been operational for a minimum of one year, that you have at least $100,000 in annual revenues, and that your personal credit score is above 550.
The basic qualifications for short-term alternative business loans are:

  • Time in business: 1 year
  • Annual business revenues: $100,000+
  • Credit score: 550+.

How to Apply for a Short-Term Alternative Business Loan

The entire application process for a short-term alternative business loan can be online. Many lenders will connect directly with your bank account to speed up the approval process. You can often receive loan approval in a matter of minutes and receive loan funds in as quickly as one business day.
Along with your application, you can expect to submit basic business and personal documents. Moreover, your lender may demand permission to connect to your business bank account to further expedite the approval process.

The documents you will likely need to submit along with your application are:

  • Personal tax returns
  • Business tax returns
  • Bank statements
  • Profit & loss (P&L) statement
  • Current balance sheet

Alternative funding for small businesses is capital from alternative financiers or “non-bank” lenders. But, alternative funding for small businesses is so much more than this mere definition. While there are many non-bank lenders, the alternative small business funding industry gets mostly confusing because of all the different loan related things these lenders are offering.

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