small business loan fast
Photo credit:

Credit cards, lines of credit, and business loans comprise about three-fourths of financing for new companies, according to the SBA (Small Business Administration).

Small businesses are the most widespread in the U.S. The United States economy lives thanks to such enterprises: it employs more workers, than large and medium businesses.

This fact is gradually minimizing the unemployment gap. SBA reports that there are more than 28.8 million small businesses in the U.S. It is approximately 99.7% of all the business of the country. Small business activities employ over 48% of the population, or over 56 million people. These numbers are growing all the time. They create over 1.1. million new net jobs each year.

Those enterprises are essential not only for unemployment decrease – they expand the possibilities for women and minority as well.

Business Loans

Why Do Small Businesses Ask for Financing?

SBA informs, that small businesses become borrowers for four principal reasons: starting a business, buying inventory, expanding a business and fastening the financial foundation of the company. Small enterprises borrow more often than other businesses types, approximately 73%.

Unlike big corporations, they do not have the same level of access to equity-based funding and capital platforms. 64% of small business owners open their commercial endeavors with $10,000 or less.

What Hinders the Development of Small Businesses?

The National Small Business Association sees a correlation between the ability of the small business owner to hire more employees, to expand a business, to purchase more equipment and his/her ability to get financing. Unfortunately, the 50% of organizations survive 5 years.

Only one-third of them survives 10 years or more. Around 41% of small businesses cannot grow their businesses because of the lack of admittance to reliable financial services.

Over 20% of small businesses have to fire their employees because of tight credit constraints. The biggest obstacle to the growth of small businesses is economic uncertainty, that results in regulatory burdens and lower consumer spending.

What are the Financing Options?

According to the National Small Business Association, many small businesses are still relying on bank loans (around 31 percent). The problem is that big banks approve only 24.1% of small businesses’ applications.

More and more owners of small businesses turn away from traditional bank lenders and apply for fast small business loans. Alternative lenders approve 58.2% of loan applications.

Why is Business Loan the Best Choice?

unsecured business loans
Photo credit:

It can be quite challenging to fund a small business. It is hard to do this not only at the start, but anytime something unpredictable happens. When it does, its owner can get small business loans fast.

They can be a smart alternative to liquidating a retirement account or raiding personal savings.

It is a good solution to pay interest on a loan for a couple of months or even years, particularly if your credit score is high and the interest rate is low.

Extra money from business loans can help pay employees during a busy season, finance everyday operations or bring your business to the higher level when presented with a large order.

It can also assist you in buying new inventory, like updating the computer systems of your company.

What are Unsecured Business Loans?

If you want to get a business loan without providing security, fast business loan unsecured is the best option for you. This is the perfect choice for small businesses, which do not have many assets.

It is also a good option for small businesses, that expand quickly and need fast financial help.

More and more companies have intangible assets. For example, if you are a consultancy company, you only tangible assets are a rented office and a couple of computers. In this case, you cannot give any collateral. You can get fast business loans unsecured.

Is it Possible to Apply for a Loan with Bad Credit?

Certain lenders agree to cooperate with the companies, that have a bad credit history. It is worth speaking to a specialist and discussing all the terms and details. The bank is not an option for the borrowers with the low credit score. The answer to their application is mostly negative.

The market of alternative lending companies is expanding all the time. So more and more lenders propose fast business loans bad credit which means more and more opportunities for business owners.