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What are Alternative Small Business Loans?

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There are different types of getting business loans for those, who are ready to meet the lender’s requirements, and for those, who aren’t. Alternative small business loans are provided by private banks. Traditional banks don’t offer this option. Such loans can be used for whatever you want (that refers to business).

While it sounds tempting, this kind of credits contains some drawbacks such as high rates. Obviously, the rate depends on different factors but is defined by the lender. So, if you find the right approach, you will manage to lower the interest. Such loans are usually quickly approved. The company needs no more than 48 hours to find the suitable lender.

The amount of required documentation is usually lower that every traditional bank requires. A potential borrower has to provide bank statements during 3-6 months, processing statements during 3-4 months, active photo ID, a copy of a lease or mortgage statement (if the business is connected with a home business), landlords contact details and a voided check.

It’s possible to apply for a substantial sum of money from $2500 to $500,000. You should provide a proof of your creditworthiness as banks accept the risk and this risk must be justified.

Check these awesome free tools to run a small business.