It is more difficult than ever before to secure small business loans and raise capital because of the financial crises and ensuing credit crunch. Fast-growth companies that are compelled to consume more resources to feed their growth are at an even higher level of risk. If they are not very careful, they might find that they have grown themselves out of business. Click here now to find out what type of business loans you qualify for.
As an entrepreneur, you know that small business funding is essential to starting, running and even expanding your business. As the adage goes, “it takes money to make money”. If the small business finance plan is not done properly, it has the potential to hinder the entire business. To get the funding that is required for your business, you need to take several financial and non-financial things into consideration. Financing, even a small business, is one of the most time-consuming and challenging tasks for a business owner.
Is it really that difficult to get funding?
Recently, I was having a discussion with a veteran business banker who worked at one of the country’s top banks. We spoke about the percentage of business owners that can receive the funding that they need from their local bank.
It was astonishing and disheartening to discover that she could only help 3 out of approximately 20 business owners that came to her every week for funding. At the end of the day, only a small percentage (1 or 2) of the initial 20 business owners received the funding that they need to grow or maybe even start their businesses.
If you stop to do the math, that’s less than 10% of established business owners and the percentages becomes even more dismal for startup companies.
What aspect of the lending criteria makes funding so difficult to attain?
Banks tightened up their belts and became extremely conservative in their lending practices after the economy crashed in 2008. As a result, it is challenging to get approved for business funding at any bank without showing that your business has been profitable for the last 2 years based on your tax returns. It is important to remember that there are still options available for small business financing despite the gloom and doom.
What is the best solution that I recommend for you?
You can apply for your small business loans easily online. This will help you save a lot of endeavors and time. You’ll gain access to a variety of financing options without having to leave the comfort of your home. It is highly recommended for you compare your many financing options and choose the solution that is the best fit for your small business. This will minimize your chances of wasting money and increase your chances of finding the optimal solution to your business funding challenges.
Fundwise Capital uses a network of lenders and a strategy that enables new and growing businesses owners to gain access to unsecured lines of credit (at a rate of 0% for the initial 9-15 months). They helped secure more than $200 million in funds for their clients. Do you want to know what you qualify for? Click here to apply it only takes 30 seconds.