Small business owners can really find it tough to get a business loan for various reasons. Low credit score, low cash flow are some of the common reasons among small businesses. In such a scenario, how do you really process a seamless business loan from top lenders? This guide is for you if you, too, have such questions. Also, read on even if you or your business have bad credit or no credit, or no collateral. We will help you get a loan even if the odds are against you.
What are Small Business Loans?
These are small loans that are created specifically for small businesses to help them manage their business. It could be inventory, cash flow, or business expansion. Different types of small business loans include:
- Term Loan: Money borrowed upfront with a promise of repayment in 6 months to 5 years in a fixed monthly payment schedule.
- SBA Loan: Loans that are backed by the US government and offered by banks or lenders tied up with the government.
- Merchant Cash Advance: An advance taken against the daily credit sales. A percentage of amount from sales is taken for repayment.
- Equipment Financing: A loan taken to finance a particular equipment.
- Invoice Financing: A Loan taken against outstanding customer invoices.
Small Business Loans: Top Reasons for Rejection
To get through your loan process seamlessly, you need to first understand the top reasons for rejection and avoid them. If not, choose lenders that accept despite flaws in your profile. We will talk about the top 3 reasons for loan rejection:
- No Credit or Bad Credit Score: Your loan is rejected if you or your business has a bad credit score. This is because a credit score is the primary criterion for traditional banks or lenders. For this, you can approach direct lenders who offer bad credit or no credit loans like BusinessAdvanceLenders.
- Lack of Collateral: Many lenders do offer unsecured loans; however, if you have a bad credit score, then collateral becomes essential. However, you can get a loan even with a bad credit score through direct lenders.
- Unclear Application: Most people fill out a loan application in a hurry with inaccurate information. This can cause a loan rejection. You should instead try out fast online applications offered by direct lenders.
How to Apply for a Small Business Loan Online with No Credit Check
Approach online direct lenders rather than traditional or third-party lenders if you do not have collateral or have a bad credit or no credit history. Here’s how easy our loan process at BusinessAdvanceLenders is for a loan:
- Access and fill out our online application
- Once you submit, our team will go through your profile and provide an instant decision.
- You will be asked to go through the loan terms and conditions and e-sign the loan agreement.
- Post that, your loan will be transferred directly to your bank account.
Get a Small Business Loan with Ease
To get an easy online business loan, go through direct lenders. Fill out the application form with accurate details and try to keep all the documents ready for the loan application.