4 Things a Bank Won't Tell You About Receiving a Loan
Having additional financing can help you advance your business in whatever ways you see fit.
When pursuing business financing options, it is important to consider different products, lenders and opportunities. Applying for a loan from a bank might seem like a viable possibility, but it is important to be well-informed about their application process, finance options and overall approach. In this post, we’ll share four things that a bank may not tell you about taking out a loan. In addition, we’ll explain how many alternative finance companies are able to provide the customized working capital that your business needs. Let’s get started, so that you can be aware of what will happen if you attempt to get a loan from a bank:
1. The length of their application process – One component that a bank many not be entirely up-front about is the duration of their approval procedures. Many banks will look at a number of qualifications, including your business’s credit history, collateral and the size of your business, among other factors. They will likely request to see your personal and business financial statements, business plan and potentially cash flow forecasts for a certain length of time. All banks are different, and may require more stipulations in addition to the ones mentioned.
After jumping through all of these hoops, there is still no guarantee that you will be approved for a business loan from this banking institution. This means that after dedicating weeks or even months to the application process, you could still find yourself without additional working capital. In comparison, most alternative lenders will be able to ensure that you receive an approval status within a week or less. At Fora Financial, we’re able to provide financing to our customers in as little as 72 hours. Plus, our one-page application offers a no-stress process!
2. Whether you’d be better suited for a different product – Did you know that loans aren’t the only business financing options available? For instance, we offer merchant cash advances, which are a purchase of your business’s future receivables. This product is beneficial for businesses who receive most of their payments via credit cards. Banks primarily specialize in loans, which means they won’t tell you about other products that could be a better fit for your business.
3. That they aren’t flexible with loan amounts – Believe it or not, but many banks don’t prefer to give out loans in smaller amounts. They don’t find these transactions to be worth their time, and would prefer to lend larger sums. This means if you need a bridge loan to get you through an upcoming project, or simply don’t need a large amount, you may be out of luck. Instead of applying to banks, reach out to a working capital lender. They will be able to provide you with flexible financing and terms that are in-line with your business’s goals.
4. They likely won’t be able to provide personalized customer service – Due to their customer volume, most banks won’t be able to dedicate their full–attention to assisting your business. Understandably, you don’t want your business to be just a number. You want thorough assistance, and a quick turn-around. Most banks will not be able to promise this level of service, which is why researching alternative finance companies may be a better option.
Before you waste time applying for a loan from a bank, contemplate the consultative service you could receive by applying for working capital from an alternative financing lender. Needing money for your business can cause major tension; so why not alleviate that pressure by applying to a lender instead of a bank. Your application process will be shorter, and they’ll have your best interests in mind!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.