Save Your Company with Fast Business Loans

12:15 AM January 15, 2020

A new company is like a baby fragile and naive. To grow a company regardless of the harsh economy, resentment from prospects, or investor’s doubt; every establishment needs financial backup.

While many founders may ‘pray’ for angel investors, only a few get white funds.

However, who do you turn to when no one is willing to fund your brand?

Your guess is as good as mine; fast business loan providers.

Why founders prefer Fast Business Loans to Traditional Bank Loans?

The great recession, which lasted from December 2007 to June 2009, saw the death of the smooth bank-SMB relationship.

Banks were no longer willing to water budding businesses with funds and the economy changed the way traditional loans were handled.

The once swift loaning processes became slow. Before 2007, banks released funds within three days to a week. However, the recession forced banks to extend their loaning process to 6 months or a year depending on the criteria and industry.

Also, the guidelines were fortified. Nowadays, banks dump their bulky terms and conditions on small businesses with the hope of repelling them.

These strict guidelines did not change after the recession; banks adopted a new practice that doesn’t favor small businesses searching for quick loans.

Founders prefer fast business loans to traditional bank loans because fast business loans require less time, more speed and few requirements.

Types of Fast Business loans

Merchant cash advance

A merchant cash advance aka MCA offers small businesses a specified amount of money in exchange for a part of its future sales.

For founders seeking a way to keep their companies alive, the MCA is a good source of funds, as MCA funds cover the operational costs.

Repayment is made on a daily basis and the portion of the company’s daily credit sales collected depends on the agreement between the loan provider and the company. Also, most MCAs have no fixed rate.

Quick loans direct

Unlike Merchant cash advance, quick loans direct is a swifter and cheaper alternative, which offers up to $1,000,000 to small businesses without burying brands in unfavorable T&As.

The loan platform was founded in 2015, six years after the great recession as a means of helping small businesses that have been neglected by banks and conventional loaning agencies.

Quick loans direct can be used to cover operational expenses, settle bills, pay staff, acquire inventories, run and expand your brands’ influence.

It takes less than five minutes to be preapproved and a maximum of 24 hours before you receive the funds in your account.

Revenue-based loan

Revenue-based loans look similar to MCA, but there are some similarities between them. Unlike the merchant cash advance, revenue-based loans are repaid based on company bank deposits, not daily credit sales.

The company is required to give the lender a portion of the future revenue in exchange for capital upfront. The requirements for a revenue-based loan are as follows;

• Down-to-earth application
• Bank statement for 3 months
• Merchant statements.

Peer-to-peer financing

Peer-to-peer financing is more or less like borrowing from friends; only that this time, you’re transacting with total strangers.

All you have to do is locate a peer-to-peer loaning site; post the value of money you need and the maximum interest rate you can pay; then, wait patiently for your lender.

This type of loaning method does not require a good credit score, but the probability of getting funds is low and there a limit to the amount of money you can get from peer-to-peer financing.

Resources

Resources For Alternative Financing For Business
Few Ways to Get a Business Loan

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