Should I Consider Alternative Business Loans for My Small Business?
Alternative business loans have more flexible credit demands, easier applications, and faster access than conventional bank loans. This alternative financing of businesses includes everything from short – term working capital to long – term commercial property loans. Alternative corporate loans are ideal for companies that cannot qualify for traditional loans or 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. Some of the key factors that we assessed are:
- How long does your business need to be operational before a lender will offer you a business loan?
- The minimum credit score you need 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 we assessed all vary ominously in their qualifications and potential uses. The key factors we considered when evaluating these 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 loans provide quick funding of up to $500,000. They are easier to qualify for, can get funded quickly, and have shorter repayment terms than medium-term business loans. Repayment terms for a short-term alternative business loan typically range from three to 24 months, and annual percentage rates (APRs) range from 30% to 50%.
Short-Term Business Loan Recommendations
The restrictions for short-term small business loans are slightly less than midterm business loans. 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 business loans are:
- Time in business: 1 year
- Annual business revenues: $100,000+
- Credit score: 550+.
How to Apply for a 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 minutes and loan funds as quickly as one business day.
You can expect to submit basic business and personal documents along with your application. Moreover, your lender may demand permission to connect to your business bank account to expedite further approval.
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 much more than this definition. While there are many non-bank lenders, the alternative small business funding industry gets most confusing because of all the different loan-related things these lenders offer.