Getting business funding via a bank loan is the classic solution to most problems that business owners have. In the old days, you’d apply for a loan and get it within a decent amount of time. As years passed, bank loans became harder and harder to get. Are you still going the old fashioned route? You might want to reconsider if you notice these five signs...
- You have bad credit or no business credit. New bank regulations make it harder and harder to qualify for a loan. If you have bad credit or no business credit, the chances of you getting a traditional loan will not work. So, you might need to look for other routes.
- You need the money as soon as possible. While some banks might be willing to disburse cash early, the fact is that it only happens for major companies like Wal-Mart. If you need your money immediately, a cash advance is the best possible route you can take.
- You’re not 100% sure how business will go, and aren’t sure you could make regular payments. This is never a good thing, but it happens in many industries. If you’re not 100% sure you can make payments on time, you need to opt for a merchant cash advance. With advances, you only pay what you can afford, when you afford it. If you don’t make any money, you don’t pay a dime. It’s that simple.
- You are only in business for a short time. Due to the regulations banks use to keep things profitable for them, they won’t likely issue out a loan if you’re just starting out. If you need money for a fledgling business, you will need to look to an alternative lender.
- The bank refused to give you any say in what amount of money you’re allowed to take out. A common issue people have with banks is that they often don’t allow you to get the money you want. Rather, they’ll ask you to borrow a lot more or a lot less. Merchant Cash advances offer more control, which in turn makes it better for businesses that don’t want to have to settle.
The bottom line is that bank loans aren’t for everyone. If you want to make sure you get the funding you need, you will need to make sure that you get the most out of your lending time. Call CPS, and we can help you get the funding you want.