As you would research bank loans, it is crucial to do the same when searching for perfectly matched small business financing options. As some banks and their loan options may be better for certain businesses, alternative lenders and their products will be better suited for particular companies.
Small businesses are facing difficult times, recovering from the pandemic and trying to navigate through high-level inflation and interest hikes. Getting a business loan has become increasingly complex as banks tighten the belt on borrowing. However, alternative lenders have your back!
So, what should you consider when researching and selecting alternative lenders to finance your small business?
Scan online reviews to cross-check red flags or potential issues before accepting financing from an alternative lender. However, it is crucial to remember that 2 or 3 bad reviews may not be completely accurate. Many disgruntled customers may provide misinformation about a lender due to either defaulting or failing to keep up with the commitments.
It is best to see how many good reviews there are compared to the lender’s bad reviews. It’s telling if a lender has hundreds of good reviews and a handful of bad reviews. If you still feel uncomfortable about a bad review, be honest with the lender and ask questions to help you decide whether they are the best fit. Financial service reviews are mainly found on Trust Pilot. Type in the business’s name followed by Trust Pilot in your google search to see all the reviews about that particular business.
If you plan to work with a traditional bank or credit union, check with other business owners to see which institutions have the best reputation.
Most small business loans and business financing are underwritten based on your credit score. The minimum credit score required to qualify for small business financing depends on the lender. It is crucial to stay up to date with your credit score and continuously work to improve it to receive the best rates and amounts to finance your small business.
However, at ByzFunder, the minimum requirements needed to receive business financing is at least 6 months’ time-in-business, making $10,000 in monthly business revenue, and based in the USA.
Business financing amounts vary by lender and loan and financing type. Before choosing a small business lender, evaluate your business’ borrowing needs. Never bite off more than you can chew. Our financing amounts start from $5000 to $500,000 and are based on your business qualifications and needs.
As banks take stringent measures to confirm eligibility for loans, their underwriting process takes a lot longer than an alternative lender’s. Banks can take weeks, if not months, to issue loan approvals. SBA loans can take several months to receive the funds you’ve applied for.
The time it takes to process an application and receive funds varies by alternative lender. Some lenders take up to 72-hours to issue business financing approval to a couple of days, whereas our process happens in less than 24-hours of applying with us. We have approved some businesses within 3-hours of applying – that’s our customer service and superb underwriters for you!
If you need business financing quickly, choose a lender that can meet those time constraints.
APRs vary by loan or business financing type and lender. The most creditworthy applicants qualify for the lowest rates, with some lenders being more competitive than others.
At ByzFunder, the factor rate varies for each business and amount. It is determined by various factors, including your business profile, business revenue, cash flow, industry type, and credit profile. Your Account Manager will disclose this rate to you before entering you into any financial agreement; thus, you need not worry that you will be unaware of the rate you will be charged on your business financing.
Many lenders charge origination fees that cover the costs of processing applications and underwriting loans and financing. Some lenders charge prepayment penalties for borrowers who opt to pay off their loans early. Our entire process is transparent, and we do not charge additional rates and fees. Our team walks you through the agreement before you sign on the dotted line, ensuring peace of mind that you won’t have any unwarranted or unexpected charges later down the line.
We pride ourselves on delivering exceptional, transparent service. We work with high-risk businesses, not excluding small businesses that need the financing help to flourish in these tough economic times. Our funding process is fast, simple, and secure. You will receive same-day business funding by applying with us today.
“It was the easiest process I ever went through. Everybody was great to work with – they got me the funding I needed in less than 24-hours. Such amazing people, thank you.” – All American Painting