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What is the fastest and easiest way to get a business loan?

Fast & easy business loans

Before I answer that question, I want you to know that I’m going to take a deep dive into the 49 of the most frequently asked questions when it comes to securing easy business loans.

I know you should never answer a question by asking a question, but I’m going to do it anyway. In fact, I’m going to ask two questions back-to-back.

Are you one of the many Americans dreaming of owning your own business?

or

Are you one of the 31.7 million small businesses in the U.S.?

According to the SBA, each month more than 543,000 small business startups open their doors for the first time. For these businesses to stay open, they’ll need money. And, unless they’re independently wealthy or have tremendous business resources, this means that most new small business owners will need loan options. Most businesses will look for an easy loan for business.

First things first, why does your business need a loan in the first place?

 

Almost every small business will need to apply for a small business loan at some point. Almost every business owner asks the same question, “how to get a business loan.” You may have noticed that the banks aren’t always helpful. Unless your financial records are impressive enough to amaze Bill Gates, most traditional lenders will treat you like a disaster waiting to happen.

You may be wondering if is it easy to get a business loan. Thankfully, there are lots of alternative financing options are available.

Sometimes the easiest way to answer a question is to give you an example. Although I could give you 100s if not 1,000s, I’ll start with these two (really for no reason other than they are the first two that jump out at me right now as easy business loans).

review I loved working with Sunwise Capital

Sunwise Capital review - fast and easy

The first is about Windy City Auto repair in Chicago, Illinois. This Chicago auto repair company just got an SBA loan to secure additional real estate for his expanding business. His goal was to get a line of credit or a small biz loan while re-cooping from the cost of the new building.

He comes to us looking for $25K to $40K. The concern is that the SBA loan will interfere with his ability to get approved for additional financing. We explain to the business owner that this is an easy small business loan for us.

In fact, we quickly approve the auto repair company for $77,754.00 with minimal paperwork. From application to depositing money into his business bank account is 38 hours.

My second example involves the Eight Bar and Restaurant. The interesting part here is that the building houses the restaurant and his home. They are both in the same building but on different floors.

The owner is looking to remodel the downstairs restaurant. He says I need a business loan for $50K. His projections are the additional money will enable him to increase revenue by 25 – 30% within a year. More revenue translates into more cash flow which will drop to the bottom line.

The restauranters’ FICO is 630. He tells us he’s looking for loans for small business with less than stellar credit. We assure him that his score is not terrible by any means, but definitely not strong enough to get a bank loan. Plus, the whole home and business in the same building make the banks a little queasy based on revenue, credit, and other assets (or lack thereof).

He went on to say that he has some friends who are lending money to small businesses. His friends talk to him about hard money business loans bad credit. We assure him that as fast money lenders we can get him quick and easy funds.

Sunwise Capital Reviews

We spoke to him about his friends. We said that while it sounds like a good idea, (ask me about the 3 Fs; Family, Friends, and Fools) there are pros and cons to everything.

We discussed several things, including the need to build a long-term relationship with a business loan direct lender. We stressed that you want someone who can get fast capital funding, as well as different types of loans that fit the immediate and long term needs of the company.

We also talked about working with a company like Sunwise Capital. Working with us means more money, better rates, and better terms as the relationship grows. We lend the restaurant $45,000 with the same day business loan and have successfully re-borrowed several more times to the tune of an additional $57,000.

Look, the bottom line here is you might need to know how to get money for a business with lousy credit, or figure out how to get business money loans, right?

I’m also going to assume you’ve forgotten more about your business than I will ever know. Is that safe to say? If I had to categorize the reason or reasons why you and your business need money, it’s usually for one of two reasons.

The first reason is cash flow. The second reason is for growth and expansion. Am I right or am I right?

Use Loans to Address Various Business Needs

So why does your company need that infusion of money? We’re aware that for a company to maintain regular operations, companies need what is called “working capital.” This capital is money that you’ve earned from making sales, minus overhead costs, employee salaries, and what you owe to your suppliers.

Many times this can be working capital loans for business with bad credit.

Do you need to purchase inventory, hire additional staff, catch up on bills?

Working capital is necessary to grow your business. Marketing campaigns, equipment maintenance, and expansion of your business all require spending your working capital.

But with all the overhead costs involved, it can be hard for new business startups and younger companies to build up these funds. Also, using your positive cash flow to cover these expenses can leave your business without emergency funds.

For this reason, many businesses choose fast working capital loans to cover these operating and expansion costs. These fast working capital solutions have high approval rates which allow you to grow your business without tying up your liquid capital.

What type of business loan is best for your small business?

Off the top of my head, I’d have to say it depends. I bet you know where I’m going with this. Here are the major types:

Does your small business have ongoing financial needs?

Chances are you do. Almost every business has ongoing needs. Foremost is cash flow and cash flow management, then taxes. Depending on your business, there can be a plethora of other financial needs like payroll, equipment, advertising to name but a few. Odds are at some point you’ll need a fast business finance solution.

What can you use fast business financing for?

If you receive bank financing, they will specify exactly how you can use the funds. The bank does this using covenants.

The beautiful thing about using direct business lenders, they will generally let you use the money for any purpose as long it’s in that business. If you have a plumbing business and receive money, you can’t use it to open a Yoga studio.

Whether it’s equipment financing, invoice factoring, short term loans over 6 months, franchise financing, or a fast business line of credit, most entrepreneurs and business owners go to a traditional bank seeking business capital.

Unfortunately, the experience requires time and patience. Most traditional financial institutions require annual revenues north of $1 million a year plus a credit score above 700 if not higher.

That minimum credit score plus personal guarantees makes the application process arduous at best. Your funding options can be limited with the stringent minimum qualifications. Most business owners complain that the time to funding is too long.

I’ll put it in perspective. Wells Fargo is the largest direct lender for business loans. They typically seek a company that does at least $20M a year in revenue. Bank of America? They look for $50M a year.

The irony about the banks’ direct business lending is they may not underwrite all the loans and use any number of other direct lenders to get the funds for you. So, in a way, they are business loan brokers. You just never knew that did you?

Which bank is best for small business loans?

Which bank is best for small business loans

What is the easiest bank to get a business loan? The easiest bank is the one that gives you the money. All joking aside, you should start with the bank that holds your business accounts. Next, I’d visit the bank that has your mortgage or auto and any other loans.

The worst mistake is shopping the street looking for the bank that says they’ll lend you the money. All you need to do is transfer your business accounts to them. Yeah, right.

Don’t get sucked in. Most lenders want you to have established accounts for at least one year. The minimum is 3 months. Switching is never a good idea.

A better approach is to open an account and just leave money in the account so if you do decide to switch later, it will appear as if you’ve had the account for some time.

Most banks, credit unions, and traditional lenders do not offer short term business loans.  The cost to originate both the short term loans and those commercial loans under $500,000 make it prohibitively expensive.  Moreover, the banks do not want to service loans that range in time from a few months to a year.  Nor do they want to service small loans. It is not easy to get small business loans at the bank.

Typically, the funding time for a bank to approve and originate a loan is between several weeks to several months.  If, in your hunt for fast cash capital, you are also looking for bad credit business loans from the bank, forget about it. If you’re looking for a startup loan with bad credit, don’t even think about it.

You can forget about startup business loans, erase that thought.  When it comes to short-term, quick and easy fast cash, the bank is not the place to go.

Need proof?

According to a study by Harvard University, the funding time can be upwards of 90 days. The study found that the average owner visited almost 3 banks and spent close to 28 hours on the application process.

Here are the typical bank minimum requirements before you start the paperwork process:

  • FICO: 720 or better
  • Yrs. in Business: 3 yrs. plus
  • Annual Revenue: $5M plus
  • Bankruptcy: NO
  • Liens: NO
  • Business Types: Limited
  • Documents: 24*
  • Approval Rates: Low
  • Approval Amounts: Less
  • Cost: Up to $1,000’s
  • Rates: Best
  • Approval Time:  90 days
  • Terms: Six months – 3 yrs. to 10 yrs.

Bank vs Sunwise Capital

*Here are the 24 Documents You need

1.    COMPLETE AND SIGN THE APPLICATION

2.    BUSINESS INFORMATION

3.    3 YEARS BUSINESS FINANCIAL STATEMENTS

4.    REAL ESTATE DEED

5.    3 YEARS BUSINESS TAX RETURNS

6.    SHAREHOLDER LIST

7.    PERSONAL FINANCIAL STATEMENTS

8.    BUSINESS CREDIT REPORTS

9.    PERSONAL CREDIT REPORTS

10. ACCOUNTS PAYABLE AGING REPORT

11. REAL ESTATE. APPRAISAL

12. 3 YEARS PERSONAL TAX RETURNS

13. INVENTORY AGING REPORT

14. D-U-N-S NUMBER

15. PERSONAL CREDIT REPORT

16. BUSINESS PLAN

17. REAL ESTATE SURVEY

18. FURNITURE FIXTURES AND EQUIPMENT SCHEDULE

19. COMPANY BYLAWS

20. INSURANCE INFORMATION

21. FINANCIAL FORECAST

22. CORPORATE/PTR/LLC ARTICLES

23. ACCOUNTS RECEIVABLE AGING REPORT

24. REAL ESTATE. ENVIRONMENTAL REPORT

It’s important to first understand how lenders work. For starters, most traditional lenders (i.e. banks) will judge your creditworthiness as a borrower before making a final decision about your loan. Your personal creditworthiness and credit limits can have an impact on areas such as:

  • Interest rates
  • The amount of the loan
  • The loan repayment period Creditworthiness is a historical perspective on your ability to repay a loan.

 

This is commonly summarized by a three-digit number known as your personal credit score or FICO score. There are 5 factors that comprise this score. They include your;

  • payment history (35% of the score),
  • the amount owed (30% of the score),
  • the length of credit history (15%),
  • credit mix (10%), and
  • new credit (10%).

 

Virtually all traditional lenders will use this bar as a barrier to a business loan. Usually, it requires a minimum score of 720, however, it may go as low as 680.

Even in best-case scenarios, traditional lenders will often require collateral or assets on top of a high credit score. You will increase your chances if you provide some type of security including homes, cars, cash, investments, etc. Another indicator that is often overlooked by most small business owners is the business credit score.

If your business’s credit score or Paydex score is less than perfect, the lender may also require a down payment or a personal guarantor. Take the time to read “The Secret My Lawyers & Accountants Didn’t Even Know About…”

In the above-mentioned article, we outline what it takes to get a business loan, even if you have poor personal credit and no business credit history. There is a 7-step process that if you take the time to follow will all but guarantee that you get funded. How to get your business loan approved? You should also follow that up with these two articles.

Simplistic & Powerful ways to get a Small Business Loan by Sunwise Capital

How to Build Your Business Financial Foundation in Order to get a Small Business Loan.

These are insider strategies given to you courtesy of Sunwise Capital.

 

How fast can you get a loan from Sunwise Capital?

Fast business loans icon

Sunwise Capital is an excellent option for online loans for small businesses. We are experts at quick loans for small business. We have experience working with thousands of companies to reach their financial goals.

It’s not just quick loans for small businesses or small business funding with bad credit. In fact, many of our clients are bankable. Oh yeah.

So why would a bankable owner come to us? There are many reasons. The first is quick funding. Same day or next day funding is hard to beat, especially when there is an opportunity knocking loudly at the door.

Sometimes they are tapped out at the bank or credit union, and they need fast business funding. Or perhaps they don’t want the bank knowing all their business.

Our executive staff members are all small business owners in a previous life, so we understand the way your business works and which types of loans will help you succeed. We also customize each loan with specific details to fit you and your business perfectly.

At Sunwise Capital, we specialize in connecting small businesses with loans fast. We offer options for quick same day business loans and next day business loans with high approval rates so that your enterprise can get the funds it needs quickly.

These quick online business loans range from $10,000 to $500K.

Plus, our small business approval rates are high and interest rates incredibly competitive. We actually guarantee it.

How quickly can you receive funds after applying for a small business loan?

Quick Business Funding

If you get us everything we need, including the one-page application and the last 3 months of business bank statements, we can get your business loans same day. SAME DAY!

Normally it’s within 24 hours of receiving any additional documentation we may need.

As the old saying goes, Men make plans, and God laughs.

No matter how much you plan your small business financing, there can still be instances where you’ll need to spend money on unexpected expenses. Perhaps you’ll need equipment loans when an essential piece breaks or unforeseeable circumstances cause you to lose revenue.

In these instances, you need the comfort of knowing that you can get the money you need when you need it. If you go through the Small Business Administration, you can expect to wait for a minimum of 60-90 days. The process of applying through a bank isn’t much faster.

When you apply for fast loans, you can get instant line of credit approval in as little as 24-48 hours. These quick decision loans online, with their easy approvals, will ensure that your business won’t have to stop operating and lose revenue while waiting for a capital loan to come in. We can make instant loan decisions.

What are the documents to get a same day business loan from Sunwise Capital?

 

Another frustration of going through the Small Business Administration or a bank is the amount of documentation required. Pulling all this paperwork together can be difficult and time-consuming.

Remember what we said above, the funding time can be upwards of 90 days. Imagine visiting 3 banks and spending 28 hours on the application process.

What takes you 28 hours you ask?

Many traditional lenders require business owners to show business plans, financial statements, and both personal and business bank statements and tax returns for the past three years. In addition to the time it takes for you to get these documents together, you also must wait for the lender to review the documents.

By contrast, quick short term business loans come with much less required documentation. In fact, with a company like Sunwise Capital, you can even apply for your loan online using the online application.

The application will take maybe five minutes if you do it in between brushing your teeth. The only question that you may need to look up the answer is the company’s EIN (Your federal employee identification number. NOTE: Business loan with EIN is required by all – don’t be fooled).

I guarantee you know all the answers needed to complete it in under 2 minutes. It’s that fast.

Getting loans quick approval will give you more time to work on your business, and less time filling out bothersome paperwork. In fact, you can have your funds on the same business day!

No Collateral Needed

Another benefit of fast business loans is that you often have the option to choose an unsecured loan. With these types of loans, you won’t need to put up any property, or business assets as collateral. By contrast, most banks require both assets and excellent credit for a loan. They do not offer business collateral loans bad credit.

Of course, just because the loan does not require collateral doesn’t mean that there is no risk involved. It’s still important to make all your daily, weekly, or monthly payments. Otherwise, you may have difficulty getting approved for another loan in the future.

What is the eligibility for a business loan?

 

Can we be real here? No, I mean really real? OK, thanks.

The question we get all the time is, “We’re a startup, …. blah, blah, blah, and how much money can I get?”

No offense on the blah, blah, blah. Every business starts as a startup. That’s a fact. What’s not a fact is all the garbage on the internet that says startups can get easy access to money. Can a startup get a loan from a bank? Yes, it can. Can a startup get funding from the SBA? Yup. Can a startup get a PPP loan? No.

Is it easy? NO!

Why?

That’s a lesson for another day. Suffice it to say that the stars, moon, and anything else you can think of need to line up perfectly. Yeah, it’s that challenging for the new company to get money.

The vast majority and I mean like 99% if not more, pure startups will not get funding from any type of lender. I’m not trying to be a downer. I just call it like it is. As a business owner for over 25 years and a direct lender for 16 years, I can tell you without batting an eyelash.

It’s kind of like the birds and the bees if you know what I mean.

However, I will throw you a lifejacket if you’re reading this far and you are in the precarious position of just starting out (in fact this works for all business, young and old).

Here it is. Business Credit Cards. There are stipulations here as well. If you meet the qualifications, you just might find this is the perfect solution to getting what you’re looking for.

NOTE: If your credit doesn’t meet the minimum requirements, you can get a credit partner to help you out. Totally legit and it works, trust me on this one. The business credit card is one of the best options and I’d argue every business needs them.

As Startup Business Loans Direct Lenders to Be Eligible All 6 of the Following Requirements Must Be True:

1 Credit Score 700+

2 Credit History 2+ Year Credit Card 3+ Year Mortgage Loan

3 No Open Bankruptcies Collections or Liens

4 No Late Payments Within the Past 12 Months

5 No More Than 4 Inquiries Within the Past 12 Months

6 No Change-Offs Less Than 2-Year-Old

 

Getting back to the original question, “What is the eligibility for a business loan?”

You can scroll back up to see what the banks require. Onerous at best.

Or you can apply online with an alternative lender who specializes in fast funding. Here are the highlights.

  • FICO: 450 or better
  • Yrs. in Business: Six months plus
  • Annual Revenue: $150,000 + yr.
  • Bankruptcy: OK w/ discharge
  • Liens: OK w/ payment plan
  • Business Types: 750
  • Documents: 2
  • Approval Rates: High
  • Approval Amounts: More
  • Cost: $0
  • Rates: Competitive
  • Approval Time: 24 hours
  • Funding Time: 24 hours
  • Terms: Six months – 5 yrs.

 

BAM!

What documents are needed to apply for a fast funding?

If you go to the bank, you can see the list of requirements above.

If you visit one of the reputable alternative online lenders, whether it’s a direct lender or even a broker, it’s usually a one-page application and 3 months bank statement. That’s it.

What are the requirements for a small business loan?

Is this you? URGENT BUSINESS LOAN REQUIRED!

First off you need a business bank account. Sorry. That’s just the way it is. If you’re a business, you must have a business bank account.

Next, revenue is always a good thing. Banks need to see substantial revenue over a period of time (usually 3 years). Instant business loans online lenders will deal with you if it’s only a few thousand a month. The better ones require $10K to $20,000 a month as minimums.

You must be in good standing with the state, meaning your company is active.

Beyond that, most lenders that provide instant loan decisions online have tremendous flexibility and can work through almost any scenario.

With that in mind, exactly how long does it take to get approved and have funds deposited into your account?

Once you’re approved, it can be the same day or next.

Why do certain business loan products fund faster than others?

Straightforward term loans are different than equipment loans or account receivables or account payables loans. Think about it. If it’s anything other than a term loan, there needs to be more analysis of the equipment (as collateral). Does the bank want this whatever thingamajig if you default? They need time to decide.

If it’s financing for commercial real estate, you can imagine the time it takes to decide besides, location, location, location.

Case in point. I’m talking to a commercial lender with a bank and we’re discussing the types of loans we do. I tell him we’ll offer a financing option for a restaurant. He says he will also provide a loan option.

When asked about credit he says they will not do commercial loans for bad credit.

I tell him we’ll offer a term loan based on revenue or equipment financing. He shutters at this. I ask him what he does for restaurants? He tells me he will finance the 4 walls.

That’s it. In other words, he’ll finance the purchase of the building. Nothing else at all.

He knows that if the restaurant defaults (as most seem to do over periods of time) he still owns the building, and he can put another hamburger joint into the building. If he finances payroll or equipment or general improvements or advertising, he might be stuck holding the doggy bag.

That’s one major difference between the type of lenders and loans.

Let’s look at receivables or payables financing. These reports need to be analyzed. Who owes you the money? Are they creditworthy? Who do you owe the money to? How are you going to get paid? These answers require more detailed analysis to decide.

Unsure which business financing solution is best for you?

Of course, getting small business operating loans isn’t the only way that entrepreneurs get the funds they need. Some crafty owners choose to use private investors instead. One route is the small business investment loans structured as debt.

The other route is selling equity in your business.

One benefit of going through an investor is that you won’t need to repay the funds. The drawback, however, is that, in return for the funds they provide, investors take over ownership of a certain percentage of the business.

Some owners end up working with so many investors that they become minority owners of their own companies.

With debt financing, you won’t have to give up any equity in your company. This type of funding means that, even though you’ll have to repay the loan, you will get to maintain 100% ownership of all the growth in your dream.

Quite frankly, my head would be spinning at this point in the conversation as well. It’s a lot of information. That’s why you need to speak to a trusted, experienced individual.

Speaking of talking to a trusted advisor, please don’t get me going here.

OK, let me rant just a bit.

Banks. They’re notorious for having a revolving door for their Business Bank Managers. Typically, they are young and inexperienced and don’t know the difference between a hammer and nails. Trust me.

I’ve had bankers sit and question how I can conduct a lending business online, with money coming in and out (we won’t say how much), without ever seeing a customer. They then question the legitimacy, and it only goes downhill from there.

Then next month, I go back to the branch only to be introduced to my new manager who goes through the same rigmarole. You know the drill. You’ve been doing what you do for decades and must explain your business model to the new kid on the block. Am I right or am I right?

Now let’s talk about the online experience. Whether you’re dealing with a direct lender (the one offering the direct business loan) or a broker, unfortunately too many times it is a twenty-something fast-talking slick salesman (not talking about women – you’re in a league and class of your own – as my partner is a woman – and we try to hire women if possible).

These smooth-talking individuals are trying to make a commission and I can’t say they really care whether this solution is best for you. I’ve met many a bully salesman in this space.

If it’s not right for you, it’s not right for me.

Do you offer a small business loan calculator or financing calculator?

 

Many sites offer various business loan calculators and even financing calculators. However, many of these do not calculate the payments properly as it depends on the type of loan.

At Sunwise Capital, we will use a loan calculator specific to your approval and the loan program. You’ll get an opportunity to “play” with it to determine what the best rates and terms are for your business and available resources.

 

How much working capital can you qualify for?

 

There are several factors that go into determining how much instant working capital you receive with an alternative lender. If we’re talking term loans, the simple calculation is to take 10% of your annual revenue. It may be a little more or a little less, but that simple calculation will be very close to the amount.

Do you need to provide a personal guarantee if you’re a startup?

 

The bank and SBA (including the SBA express loan) will ALWAYS require a guarantee (PG). If you’re dealing with an online lender it may depend. Sunwise Capital does not require a traditional guarantee on most of its loans.

How much down payment is required for a quick term loan?

 

The answer should be zero, nada, goose egg, nil, nothing, zilch, zip – you get the point.

I’ve always considered it funny when a bank wants you to collateralize the loan on a 3:1 ratio. The bank wants three times the value of the loan in cash or collateral.

You’re saying to yourself, “How to get a business loan with bad credit and no collateral.”

And the bank says, if you need $100,000, they want you to either have $300K in the bank or that amount in collateral (like auto’s homes, equipment, etc.). Do you think if you had $300K in the bank you’d be going to them for $100,000?

I think not.

What are some assets business owners can use as collateral for a loan?

  • CASH
  • TREASURY BONDS
  • STOCKS
  • CERTIFICATES OF DEPOSIT (CDS)
  • CORPORATE BONDS
  • REAL ESTATE
  • EQUIPMENT
  • INVENTORY
  • VEHICLES

 

My favorite is REVENUE.

That’s right.

You can use your revenue as collateral to get the money you need. In fact, most of the online lenders use your monthly revenue to determine how much money they will lend and will put on a UCC (Uniform Commercial Code) to ensure you pay back the loan.

 

What is a business installment loan, and why would I need one?

 

The business installment loan is simply a fixed amount of capital that you pay back in equal monthly installments that include both the principal and interest. Examples are Auto Loans, Mortgages, Personal Loans, Student Loans, etc.

Can borrowers with bad credit get approved for a business loan?

 

Yes, just keep reading. You’re doing great!

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Don’t Let Credit Hold You Back

Running a small business requires taking on a lot of risks. For this reason, many small entrepreneurs develop less-than-stellar credit scores. Sunwise Capital specializes in bad credit business loans. If you have challenges with your business credit or personal tax liens up to $175,000, we can help.

Just do me a HUGE favor. Don’t get sucked into the sites that say, “Get a Business Loan No Credit Check.”

Any and every reputable lender will check your credit at some point. They may (as we do) start with a soft credit pull, however, once approved and you decide to move forward ALL lenders will pull your credit.

These credit challenges can be a problem for businesses that apply for a loan through a bank. To get approved, a business owner with poor credit may need to accept a loan with a much higher interest rate, or not get approved at all. With fast business loans, it’s often possible to find lenders who will work with your credit profile.

What credit score is needed for a business loan?

 

Need a small business loan with bad credit? Banks and credit unions are always going to require the squeakiest clean credit scores. Most want to see a score higher than 700 although you may find situations where they’ll accept a score north of 680.

The broader question is what that score represents.

  • Payment history (missed or late payments are very negative)
  • Amounts owed speaks to utilization and the amount of debt relative to available credit
  • Credit history length looks at how old your credit lines
  • Credit mix looks at things like credit cards, revolving debt, mortgages, auto loans, etc.
  • New credit looks at whether you are papering the street with credit applications.

How important is your credit score when you’re applying for a small business loan?

 

If you’re applying online, typically the health of the business will mitigate any blemishes you have with your FICO. They will also look at your business credit. The impact of these variables means that if you have a good business with strong monthly revenue that is growing monthly or annually, it will make up for a poor score.

The opposite can be true as well. You may not have the best revenue or cash flow, but incredibly strong credit and can help in getting the funding you need.

What credit score is necessary to qualify for a small business loan?

 

The minimum FICO score is 450. Any score of 500 to 599 is acceptable. Scores that are in the 600 – 649 are pretty good and above that will get you the better rates and terms.

Can applying for a business loan hurt your credit?

 

The critical question is where you’re applying. Shopping for a car or mortgage and all credit inquiries over a period, usually around 30 – 45 days is considered just one inquiry.

Applying online everywhere if you’re not careful can result in multiple credit pulls which can hurt your score.

Many of the online lenders will do a soft credit pull to start. This pull does not show up as an inquiry, but lenders can see if you’re “shopping” for a loan. Once you have accepted the offer, the lender will do a hard credit pull.

A hard pull will lower your score by 5 points and if a lender sees too many inquiries, they will decline your application.

Does a business loan affect personal credit?

 

If you get the loan from a bank, they will typically report it to the personal credit bureaus and this will have a negative impact, while loans from the alternative lenders typically do not report to personal but to the business credit bureaus.

 

Does applying for a business loan affect your personal credit score?

 

Before the lender approves your loan, they will pull your credit which will have a temporary (inquiries last 2 years) impact on your score. See above for impact to personal credit n terms of mix.

 

What credit score do you need to qualify for a small business loan?

 

The range can be 450 on the low end to well above 700 for the very best rates and terms.

 

What business loans are the easiest to be approved for?

 

I would have to say the easiest is the fast merchant loans, sometimes called an MCA or simply a cash advance. There are pros and cons to any type of loan, and this is no exception.

I’d suggest clicking the link here and reading exactly how it works. We even show you how to calculate rates and payments so you can be a pro.

 

What payback terms can you get for a merchant cash advance?

 

As we say on our page, “Flexible payback amounts.”

Payback is made daily or weekly to improve your available cash resources.

This small daily percentage that you pay is known as your “holdback.” The holdback “percentage” can range from low single digits to as much as 30%.”

The full amount is repaid over an extended period and reflects your daily or weekly credit card revenue. As a result, you can only guesstimate the length of the advance.

Choose Loans with Shorter Terms

When you decide on a loan through the bank or the Small Business Administration, you will typically get a longer repayment term. While paying off the loan over 5 to 10 years will lead to lower monthly payments, it will also keep your business in debt for a longer period.

When you get a long term loan, you can also end up paying more interest, even if the rate is lower.

When you choose a loan with a longer term, you will have to calculate repaying that loan into all your financial projections for the coming years. These loan repayments can hold your business back. Ask your accountant for a loan calculator.

By contrast, choosing a loan with a shorter term will help you get out of debt more quickly. This way, you can focus on building your company’s revenue, rather than on making payments.

Short-term business loans can assist your firm in bridging cash flow gaps, dealing with emergencies and other pressing financial demands, or capitalizing on a business opportunity.

Consider them an emergency small business loan. Borrow only what you can afford to repay quickly so you can focus on your business instead of debt management.

A key component to running a company is ensuring you have the money to keep all operations up and running consistently. Unfortunately, for just about every company, there comes a time when this proves to be more challenging than anticipated.

New companies typically rely on revenue and reserve cash to fuel growth and development. When you are in a high growth mode, there may be pressure on your cash flow.  When you find yourself in a situation where your business could benefit from a little extra money in your bank account, you are not alone.

There are great options available to you, like quick business funding.

 

What is a Quick Short Term Business Loan?

 

Maintaining or building adequate cash flow is a challenge that causes many businesses to fail. Lucky for you, you’re learning one of the critical secrets to continued growth during slower times-quick funding for business.

A short-term business loan provides you with a lump sum of money to use at your discretion. You will make regular payments to your lender and will usually have between 3 months and 12 months to repay the loan.

For newer companies, your payment options are daily or weekly.  Much of this is due to months in business.  Once your company is at least two to three years old, online and other financial institutions will consider weekly payments or perhaps monthly payments.

With a short term business loans for bad credit, your personal credit score and assets will not necessarily be exclusive factors in whether you qualify. Your time in business, industry, cash flow, and average daily bank balances will impact the loan amount, loan cost, and loan term.

The companies with annual revenues above $100,000 and the owners’ minimum credit score above 500 offer the most financing options. The stronger the financial picture, the easier it is to secure a short term business loan.

For those business owners with damaged scores, the good news is that these loans do not report to the personal credit bureaus.  The business credit bureaus get notified, and this means you will have an opportunity to build business credit for your company.

Once you establish a good business financial history, it is much easier to secure commercial loans with better rates and terms.

Fortunately, you will likely be able to qualify for a short term loan even if your business has little to no credit history. And most importantly, if you use these vehicles to finance your business, you won’t have to use your personal accounts or acquire debt in your name.

This benefit is why loans for business are always a better option than a personal loan.

 

Do Banks Give Short Term Loans?

 

What is Short Term Financing?

Short term loans are relatively common in the business world. As your business grows and acquires the resources to sustain itself, you become more and more independent from outside assistance.

But how do you get there? Quick business finance provides you with temporary funding for projects, staffing, advertising, expansion, taxes, insurance, equipment, or building inventory.

For example, if you need to stock seasonal items you don’t otherwise carry, or hire additional personnel for the holidays, you can use quick and easy small business loans to fund these needs and pay them off pronto.

 

Why Would I Need a Quick Short-Term Business Loan?

 

In today’s world, business moves quickly.  You never know when you’ll run into that unexpected challenge or opportunity.  Success hinges on the precipice and financing options can make or break your dream.

Perhaps you can buy inventory at a deep discount, and your time to funding is critical in acquiring the discounts.  Maybe your client needs another week to pay their invoice.  The challenge is you need to make payroll this Friday.

This ability to fund quickly is the reason quick business cash becomes the perfect option.

Many online lenders can fund the same day or within twenty-four hours.  The loan amounts can range from $10,000 to $250,000.

Benefits of Simply Quick Business Loans

In addition to the easy acquisition of short-term capital for your business, there are extensive perks associated with this strategy. Check out some of the ways you and your company can benefit from this type of loan.

  • The online application process is simple and filled out online.
  • The loan payment is deducted automatically from your business bank account
  • You will not be required to use your assets or put up collateral.
  • You will have a set daily or weekly fixed payment amount.
  • There is a lot less paperwork than you might have with a traditional loan.
  • You can receive funds quickly, sometimes in as little as two business days.
  • Qualification for Short-term loans is easy.
  • It works for a variety of business needs-virtually anything you want.
  • Your personal credit will not be affected.
  • We report to your business credit, so prompt payments help you to build a good credit score for your business accounts.
  • It enables you to fund your business needs without dipping into personal accounts.
  • Because you can use the money to support any part of your business, it facilitates and expedites company growth and development.
  • Usually, no prepayment penalties, and there can be early payoff discounts.

 

What is the Interest Rate on Short Term Loans?

 

Contrary to common sense, the annual percentage rate on a business term loan tends to be higher on these loans than a longer-term loan or what you may consider being a line of credit. It’s less to do with loan type and more to do with risk.  You will also find the loans priced with a factor rate, which is like the merchant cash advance.

The cost of funds is a factor in deciding whether this finance option is an excellent choice for your company. Don’t be surprised if there is also an origination fee of one to 2 points.  This fee will add another $10 – $20 per $100 you borrow.

That’s why getting an estimated APR is challenging.  Remember that any short term financing can be expensive.  On the flip side, you usually do not put up a traditional personal guarantee, nor do you need to post collateral or assets.

The truth of the matter is that it’s all about the payment. That’s the reason why so many car loans are now 7 years rather than three. You’ll pay a higher rate for taking out a longer loan, however, the payment is less and that is what typically drives the decision.

 

What Do I Need to Qualify for a Short-Term Business Loan?

 

The qualifications for obtaining a quick short term business loan bad credit may be more within your reach than you think. Once you have completed the one-page application process and been pre-approved, you will need to provide a valid driver’s license, a voided business check, and proof of ownership for the business for which you are using the loan. You may also be asked to show financial statements from your company for more significant dollar amounts over $100K.

 

Where Can I Get a Quick Short Term Business Loan?

 

When looking for quick short-term business loans, it is a good idea to find a company that fits you and your specific needs. It is also helpful to work with a lender who is familiar with new or small business operations so that they can help keep you heading in the right direction. Another useful strategy is to check fast business funding reviews or ask business colleagues for recommendations. You want to be sure you choose a company you can trust.

Business funding is somewhat of a commodity, and it’s a buyer’s market.  The approval rate is generally higher with online lenders as their pre-requisites are more liberal and forgiving than the banks.  Poor credit is OK, especially with short term loans.

 

Applying for Business Loans Easy 

Business owners – let’s say you need additional funds for expansion, debt consolidation, or maybe better equipment financing. If you don’t have the cash or working capital on hand, then you have a few options.

First, you must decide if you need a high risk loan. The high-risk loans are usually reserved for those that have a damaged personal credit score or business credit. That means no traditional bank loan.

Maybe you don’t have bad credit, but you want an unsecured business loan, microloan, or a short term loan. That also knocks off the ability to use a traditional lender like the bank or credit union. These institutions only offer a secured business loan.

What you need is the ability to apply for business funding online. You need it to be easy and quick. As a small business owner, you need an alternative lender that can give you the financing options to grow your business.

These financing options include the business cash advance (otherwise known as the merchant cash advance or cash advance, invoice factoring (or invoice financing) to a simple equipment loan.

We understand how from one day to the next you may suddenly be dealt with unexpected situations that lead you to ask for cash.

Sunwise Capital can discuss with you the items affecting your credit including your personal credit score. These are things we can talk about and help you navigate the business finances’ landscape. Whether it’s securing business lines of credit from traditional lenders to bad credit loans from an online lender, we can talk to you about the loan options that are best for your business and cash flow.

 

Are business loans easy to get?

 

If you’re looking for a bank loan for your company, it can be a challenge, especially when it comes to the dollar loan amount as well as preparing the documents that you need to submit for approval. To be prepared, do your due diligence and get pre-qualified. This saves you a lot of time and trouble. Plus, it gives you an idea of your ability to secure that business financing. It doesn’t have to be a frustrating and complicated process.

 

To get an easy small business loan do you need a business plan?

 

It’s good to have a business plan with you as you file for your loan. This is virtually mandatory if you are going to secure business funding from traditional lenders. If you’re using one of the top online alternative business lenders, chances are it won’t be required.

At Sunwise Capital we do not ask for business plans or the 2 dozen plus other loan requirements and documents a bank will require as you go through the application process. All we require is a one-page loan application and the last 3 months of business statements.

Depending on the dollar amount we may require a few financial statements like a current P&L and Balance Sheet, or the last business tax return filed. We can even help you if you don’t have some of these documents. Most of the additional requirements are based on your annual revenue and the amount of funds requested.

 

One frequent question we receive is “Does this loan require collateral?”

 

No! In fact, most of our loans are unsecured which means you do not need to post assets or collateral like your home and vehicles. These loans are not based on the value of your home. These are business loans and not personal loans. We can offer a secured loan which will frequently come with a better term and dollar amount.

The business loan amount won’t affect your approval

You may have heard that applying for a large business loan may hinder your chances of approval – it’s not true. It’s okay to request a large dollar amount on your business loan. A good rule of thumb is to request approximately 10% of your annual revenue.

However, your business loan can be approved for as much as 20% of that revenue. If you have enough free cash flow to make your small business loan payment, then you’re good. We offer from $10,000 to $2M loan term between 6 months to five years.

The basic requirements are at least one year in business, annual revenue of at least $150,000, provide us with the last 3 months of your business checking account or business saving account statements. Get our online application completed and we can approve you within 24 hours and fund your business in the next 24 to 48 hours.

Another rule of thumb when applying for an easy small business loan is to get approved for the largest amount you qualify for. That way you can really determine what you need both now and in the near-term future.

What I caution you about is the pie in the sky request. If I only had a dollar for every entrepreneur with zero to a few. Month in business, no revenue and they are requesting one million dollars. Really?

I know this is not politically correct, but are you smoking crack?

You stand a better shot asking for that on Shark Tank, but then again, what do you think? Be real and watch how much more respect you’ll get.

Many online lenders will allow you to re-borrow when approximately 50% of the loan is repaid.

We try to extend to all our clients more money, better rates, and better terms when they reapply for their business loans.

Here are just a few factors to consider. How much money do you need for business growth, and how much can you afford to repay either daily, weekly, or monthly? The latter is determined by the lender.

The last thing the lender wants to do is put you in a position where your cash flow is squeezed. The idea of a loan is to make your life easier. Not constricting your cash flow and putting pressure on your profits.

If you have a hard time making your current payments on time, then you will find it even more difficult to obtain additional funding. However, one of the big differences between a lender like Sunwise Capital and a traditional bank or lending institution is that Sunwise Capital is much more forgiving.

They know life happens. So, whether it’s less than perfect credit, a few bounced checks, or NSF’s a month – no worries. Our loans are structured to help you manage your cash flow so as a result, the payments may be daily payments, weekly, or even monthly.

Caveat Emptor. Do yourself a favor and pay off one business loan before taking another. We know the temptation to secure additional business loans and know too well that there are other business lenders who will be more than happy to get you into a much more expensive business loan. Honestly, some don’t care if they choke you or your cash flow

How hard is it to get a fast business loan?

 

All joking aside if you can fill out a one-page application and upload the last 3 months of business bank statements you can get what you’re looking for.

 

How to get approved for fast business loans?

 

Click on APPLY NOW. That’s it. Follow the simple instructions.

So, what are your options when you need to obtain fast business loans?

 

I think this question needs to be reframed. You know your options. You can just Google. The. The question is are you looking for a loan to help you with growth or expansion. Perhaps you need equipment financing. Do you need supplies or to hire more people (or pay them more to keep them)? Is it working capital or a short term loan that you need? Maybe it’s a line of credit.

I think you can see that you have tons of options. You just need to make a business decision.

 

Should I get a secured or unsecured loan for your small business?

 

Most of the online lenders will offer an unsecured loan. Their security is your consistent revenue (since most are lending off that number). If it’s an equipment loan or some sort of factoring based on receivables or payables, well that’s the security for that type of loan.

 

Should you get an unsecured business loan for your small business?

 

I’m impressed you’ve made it this far. I can only answer that question by either talking to you or looking at your file. If you want to talk, call 888.456.9223. Otherwise, just Apply Now.

Unsecured business loan, or something else?

We’re near the end. Is this a trick question? LOL

Last question:

What will it take for small business owners to recover from the labor shortage?

 

That’s an excellent question. We attempt to answer it here when we discuss the Florida minimum wage issue. We think it applies to all 50 states. Thanks for asking and good luck. We’d love to help or talk to you.

 

Take Your Business Further With A Loan From Sunwise Capital