Small business lendingÂ
A small business loan is funding offered to small businesses by banks, online lenders, and credit unions. This funding is used to cover operating costs, help expand businesses, or provide them with more working capital. Formerly, small businesses looking for working capital have only had a few options at their disposal to secure financing – crowdfunding, bank loans, and from investors. From these options, small business loans from traditional banks have been the most sought-after lending option. This is partially due to the amount of funding a small business loan offers. However, small businesses across the U.S. find it difficult to apply and get approval for a small business loan from traditional banks. For this reason, many businesses are turning to alternative lenders. Alternative lenders are popular for how quickly and easily they approve small businesses for funding.
Fortunately, there are many options for companies to research and choose from when interested in receiving funding. In starting your research, it’s important to divide your financing options into two categories: traditional lenders and alternative lenders.
Researching different types of small business lending providers
Traditional lenders offer an array of products including term loans, business credit cards, and lines of credit. Creditworthiness of the company seeking financing from traditional banks is the high barrier of entry that excludes most small businesses from exploring these options.
On the other hand, alternative lenders like CFG Merchant Solutions offer revenue-based financing options such as merchant cash advances. With merchant cash advance, a business sells a portion of their future sales in exchange for working capital now. With revenue-based financing, a company’s monthly revenue is considered much more important than its credit. Alternative lending options, such as a merchant cash advance, help businesses with strong sales that cannot qualify for a traditional small business loan.
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Choosing the right financing option for your business
If you are struggling to receive financing from traditional banks, alternative lenders like CFG Merchant Solutions can approve and fund your business within hours.
The application process is simple, and far less time consuming than traditional financing options. Contact us today to learn more!