The simple answer: almost any business can easily get a small business loan if they know where to look. This era of online innovation has lead to an influx in financial technology institutions that specialize in helping small businesses secure capital when they need it.
Many businesses worry because their credit isn’t good or their business is young and in a difficult market. While these considerations impact the range of lenders willing to take a look at your business, they shouldn’t prevent you from finding financing.
Let’s look at ways to get a small business loan from hardest to easiest.
Traditional Lending Products Take a Long Time
Ever since the housing crisis, countless regulations have restrained traditional lenders like banks, making them hesitant to fund many small businesses. If you decide to apply for a bank loan, it’ll take an average of 29 hours to apply. It’s lots of paperwork and multiple proofs that your business is a viable candidate for a loan.
Traditional lenders reject around 80% of small business applications. Small businesses that manage to get approved have to wait from 2 to 3 months to find out. After approval, it takes around 90 days before the money changes hands.
For most businesses, these traditional lending products aren’t viable. They take a long time and require businesses to have amazing credit and a proven track record. So where are all the young businesses without solid credit to go?
SBA Loans Take Some Time But Offer Incredible Rates and Terms
Up next on the difficulty scale is the SBA loan. What makes this loan a little tricky is the lengthy application process. Here’s the thing, though: your business doesn’t need perfect credit to secure an SBA loan. A portion of these loans is guaranteed by the SBA, making lenders more willing to take a risk on your business.
Plus, our proprietary application platform lets you upload copies of your documents with just a click, taking most of the hassle out of the SBA loan process. And, when the loan is approved, it comes complete with monthly payments, fixed interest rates, and generous repayment terms. It’s a sweet deal.
Marketplace Lenders Like Lendio Make Securing a Loan Easy
With a marketplace lender, the application process is incredibly short. In fact, Lendio’s application only takes 15 minutes to fill out. That’s shorter than an episode of Seinfeld. And do you know what that gets you?
With most loan applications, you’re applying to a single lender. With a marketplace loan application, you’re applying to a bunch of lenders. Lendio’s application, for example, gets sent to a network of more than 75 lenders. That’s 75 separate and distinct chances for your business to secure financing.
Oh, and did we mention you can be approved and have money in your account in as little as 24 hours? That’s right, a 15-minute application that can get you funded in just one day. That’s about as easy as it gets.