What to research small business lending options

Traditionally, small businesses looking for working capital have only had a few options at their disposal to secure financing. Small business loans from traditional banks were the most often applied to and sought after small business lending option. However, it is very difficult for many small businesses across the U.S. to apply and be approved for a small business loan from traditional banks. Today, there are many alternative banks and financing options for companies to research and choose from. 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. In applying for these financial products, typically a company’s credit risk will be heavily scrutinized by the bank. 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 there future sales in exchange for working capital now. With revenue-based financing, a company’s monthly revenue is considered much more important than credit. Alternative lending options such as merchant cash advance are designed for businesses with strong sales that cannot qualify for a traditional small business loan.

 

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!