What to Do When the Bank Says No?
Your small business may be new, but you’ve been growing like crazy and need additional funding to get to the next level! Unfortunately, most banks require an established business credit history, a personal guarantee, and/or plenty of collateral just in case, which you don’t have enough of yet. So you feel stuck. Luckily in today’s world, there are plenty more options other than the bank that you can turn to…
Business Credit Cards with 0% Intro APR
If you shop around, you can find some great credit cards with rewards or miles, and an introductory interest rate of 0% for a limited time. This can be a tempting option for certain cases, but it’s not the first option you should consider because if things don’t go your way and you find yourself unable to make minimum payments when the interest rate goes above 0%, you and your business could get into some serious trouble. But if your revenue is steady, you’ve done your numbers and know you’ll be able to pay the card off before the intro offer is over, this can be a way to make your business and credit history grow.
As we spoke about in our last blog, SBA loans can be a great option, if your business lands within the various requirements set by the government. These are often difficult to land as the government doesn’t want more liability than what they consider “reasonable” so don’t feel discouraged if you’re turned down. There are other options available today!
Alternative business lending
The alternative lending market has grown over the last few years, with lenders and lending options, including the option of private loan providers who specialize in loans for large and small businesses. A variety of loan types are at your fingertips such as term loans, a line of credit, and merchant cash advance, among others.
The approval rates are often higher than for banks, due to the fact that banks have other lines of business and can afford to say “no” to particular loans. If you would like to learn more about loan options, please contact us, or fill out our quick loan application to see if your business could be approved.