Financing Options for Small Business Owners:
Exploring Alternatives When Banks Say No
As a small business owner, you may have experienced the disappointment of failing a pre-approval or being denied financing. It could be due to a low FICO score, not meeting the required business experience of three years or more, or having a blemish on your business credit. Even if your business is thriving with positive cash flow, banks can still reject your application if you don’t meet their long list of stipulations. In fact, a recent report revealed that only 27% of small businesses in need of capital were approved for a loan when they approached a bank, despite nearly 60% seeking their help. However, don’t lose hope. There are still several viable financing options worth considering when traditional banks turn you down.
Understand the Rejection
Before exploring other options, take the time to understand why the bank declined your application. Some factors might be within your control, and with a few adjustments, you can improve your business’s creditworthiness.
1. Small Business Association (SBA) Loans
Although the SBA 7a doesn’t lend directly to small businesses, they help mitigate some risks, making it possible for banks to lend when traditional business loans are not an option. To be eligible, you’ll need to meet specific criteria and provide documents such as a sound business plan and financial statements. The application process can take anywhere from many weeks to various months to complete.
2. Business Line of Credit
An unsecured line of credit provides quick access to funds, repayment flexibility, and separation from personal credit. There are two options available: traditional lines from a bank and non-traditional lines from alternative sources. Traditional bank lines of credit come with numerous stipulations, while non-traditional alternatives require less scrutiny and deliver decisions much faster. These alternative options also provide small business loans specifically tailored for women entrepreneurs.
Depending on your business model and strategy, crowdfunding might be a viable option. This innovative approach allows numerous individuals to make small contributions through a web platform to fund your project. In return, your business offers a product or service to each contributor. If you choose this route, be prepared to invest time in developing and marketing your project to attract as many individuals as possible.
4. Alternative Financing Options
The fastest-growing option for small business owners to access capital is alternative non-bank lending. Alternative lenders like BitX Funding offer simplicity, convenience, and speed, providing loan decisions within hours and delivering funding in a matter of days. Although the cost of capital is higher compared to traditional bank loans, these lenders provide transparent terms, fixed automatic repayments, and a convenient customer experience.
5. Merchant Cash Advance
Another non-bank funding option is a Merchant Cash Advance (MCA). MCAs are not loans, which means that having a limited credit history or poor credit may not be an issue. Funding is based on credit and debit card sales, and once approved, fixed automatic repayments are made based on a preset daily percentage. While the cost of an MCA is typically higher than alternative loans and bank financing, business owners can secure funding within days through a simple application process with transparent terms.
When banks say no to financing, it’s crucial to explore these alternative options. By understanding the reasons behind your rejection and considering these viable alternatives, you can secure the funding your small business requires.
BitX Funding: The Ideal Choice for Small Business Loans
When it comes to securing small business loans, BitX Funding stands out as an excellent option. As a small business owner, you’ll find their services to be a perfect fit for your financing needs. Here’s why:
Simplicity and Convenience:
BitX Funding simplifies the loan application process, ensuring that you can easily navigate through the necessary steps to secure the funding you require. Their user-friendly platform and streamlined procedures make it hassle-free and time-saving.
Fast Decisions and Funding:
Waiting weeks or months for a loan decision is a thing of the past with BitX Funding. They provide quick loan decisions within hours, allowing you to access capital promptly. Once approved, you can expect to receive funding in just a matter of days, enabling you to address your business needs without delay.
BitX Funding values transparency. You can trust that their loan terms are clear, concise, and easy to understand. You won’t have to worry about hidden fees or surprises down the line. Their commitment to transparency ensures a smooth borrowing experience.
Fixed Automatic Repayments:
Managing loan repayments becomes effortless with BitX Funding. They offer fixed automatic repayment options, simplifying the process and allowing you to focus on running your business. With a clear repayment plan in place, you can confidently navigate your loan obligations.
Now is the time to act and secure the financing your small business needs. Don’t let traditional banks hold you back. Visit BitX Funding today to explore their loan options and apply for the funding that can help your business thrive.
Remember, financing options are available even when banks say no. Choose BitX Funding for a seamless and efficient lending experience. Call now at 203-763-1430 and propel your small business forward, or Apply Now with BitX Funding and take your business to new heights.