Easiest Business Loan To Get: What Factors Are Important When Looking For A Financing Solution?
Every type of business requires some type of loan or line of credit for a wide range of reasons: start-up capital, equipment, inventory, office rental, etc. Since every business and every owner is different and has unique circumstances, the easiest business loan for another owner to obtain may not be the easiest for you.
For startups or businesses that have no or poor credit history, traditional bank loans are likely to be difficult to obtain. Also, with a low credit score, your interest rate will be high, even if you are approved for a loan.
Lenders will generally look at more than your credit history. Other factors include your time in business, the industry, your personal credit score, whether you have had recent bankruptcies or defaults, balance sheet, business licenses and permits, tax returns, loan purpose, proof of collateral, and various other reasons.
If you think your financial situation is likely to improve, you will need to provide supporting documentation. Always have your financial documents and files ready and organized anyway, so you can complete the application process as smoothly as possible.
Are SBA loans the easiest business loan to get?
Many people do not consider SBA loans and long-term loans to be the easiest business loans to obtain, as the application process is very long and complex. Only consider SBA loans and traditional long-term business loans if your credit score is high and you have all of your financial statements prepared and ready to go. However, the application process can still take some time, so you will have to wait until it is approved.
If you need cash as quickly as possible, there are options like merchant cash advances. This type of offer will help you access capital. You will receive a lump sum of cash, but you are expected to forfeit a portion of future sales. You will be responsible for repaying the loan and fees. While there is no set fee, $ 15 for every $ 100 borrowed seems to be a fairly typical amount for many cash advance merchants.
Invoice financing and equipment financing are quite similar with their requirements. With the first, you will need to display details of your unpaid bills, as well as bank statements and other financial information. With the latter, you will need to explain the type of asset (s) your business needs to purchase and provide an equipment quote, business tax returns, bank statements, etc.
There are many other options for businesses of all sizes thanks to the Internet. Online lenders are popping up all the time, although it’s best to stick with one that’s been around for at least a decade. Start your search with US Business Funding, a BBB accredited company. They will help you find the easiest business loan for your needs.