Obtaining business loans has become more difficult as banks and other lending institutions have restricted credit to all but the most worthy borrowers. Simple things like the amount of capital available to the business and projected sales growth in the industry can have an affect on your business’s ability to obtain cash loans for growth and paying employees and many business owners are finding that they do not qualify for loans under the new conditions imposed by the banks. So where can an owner go to obtain business cash loans for their company?
Over the past few years, a number of online lenders have started doing business with individuals and small business owners all over the country. The loans offered by these companies are generally comparable to the rates and terms offered by traditional lenders and the lack of overhead costs for employees and physical locations often means that these companies can offer loans for less than the banks can. Loan choices can vary widely from company to company so be sure to compare the loan offerings of several different companies before making a decision to get the best deal.
Credit unions are still strong small business lenders and many credit unions have seen a surge in lending as traditional banks have pulled back on issuing credit. Most cities have a number of credit unions scattered around the city and many of them have minimal restrictions to becoming a member and accessing services. The business loans obtained from credit unions will cost about the same as obtaining a loan from a bank, but the approval process may be simpler and faster for business owners with acceptable credit.
Peer To Peer Lending Companies
Peer to peer lending companies have emerged as a great way for business owners to obtain business cash loans. The loans arranged by peer to peer lending companies range from $2,000 to $25,000 and have repayment terms of 3 or 5 years for each loan. Each loan is funded by a pool of investors who are repaid by automatic debits from the borrower’s bank account throughout the loan period. Many business owners like using peer to peer lending companies to obtain loans because of the ease of applying for the loan and the ability to access the loan funds soon after the loan has been approved.