Many small business owners have the mistaken notion that bank loans are the only way to go when they need funding to grow their businesses. This is far from the truth, and in fact bank loans don’t even represent your best option for securing funding. There are a number of very strong reasons why you should drop the notion of applying for a bank loan, and consider a more modern and flexible approach to funding.
Difficult approval process
Virtually every bank in this country will require a minimum of two weeks and most likely a period closer to eight weeks to approve your application. Even if you do get approval, you’ll still have to wait somewhere between 15 days and 60 days before you actually get your hands on the cash from that loan. In that amount of time, you could have bill collectors knocking at your door every day of the week, and even worse, you may miss out on some key business opportunities which call for having cash on hand.
You might not qualify
These days, getting approval from a bank for a loan is not an easy prospect. In fact, your chances of being declined on your application are somewhere between 50% and 75%. In addition to requiring a very good credit rating, banks will also usually insist that you offer some amount of significant collateral, so they can be less at risk in the event of default. On top of this, if your business doesn’t have a solid cash flow, it’s very likely that you will be rejected on this basis because you are not considered a good risk for the loan.
Rather than go through all the hassle of applying and being rejected by your local bank, you will be much better off to work with an alternative lender who can supply you with cash quickly, and without all the hassles associated with a traditional bank loan. Because private lenders are not obliged to adhere to federal guidelines, they can be more flexible in granting approvals to small businesses.
Get a loan from Northgate Capital Finance
Rather than waiting months for your bank loan application to get approved, you should apply for a loan with us. Contact us at Northgate Capital Finance so you can receive the cash you need much faster, and without all the hassles a bank would cause for you.