Businesses who apply for a loan through a bank can expect to wait. But alternative business loans offer a quick solution. There is nothing quick about getting a loan from a bank. Banks are going to want a lot of information about your business before lending to you. Banks minimize their risk by checking into business’s borrowing history, credit score and company financial records. This due diligence is their safeguard against default. However, private lenders whose loans fall under the category of Alternative Business Loans can funds deals in days that would take banks 6-8 weeks or more.
Alternative Business Loans Defined
Alternative business loans or alternative lending are broad terms used to describe a scope of loan options that may be available to business owners outside of a traditional bank loan. These alternative options are most commonly used when a business owner cannot obtain a traditional bank loan for a variety of reasons including, their start-up status, poor credit score, recent bankruptcies or lack of assets. iBank Corp is an alternative business lender and can let you know quickly if you qualify for a loan.
Why Alternative Business Loans Can Close So Fast
Unlike banks, many alternative business lenders are private lenders that don’t have shareholders to be accountable to. They use a different set of criteria than banks do for predicting the likelihood of a borrower’s ability to pay back a loan. Although most private lenders consider FICO scores as part of their decision process, they don’t weight it as heavily as banks do. Private lenders are often willing to lend to borrowers with very low FICO scores and even recent bankruptcies. While banks need to know a lot about your business before making a decision, private lenders who provide alternative business loans can make decisions on a lot less information. Most importantly, they will want to know that your business has enough cash flow to support paying back your loan.
Which Businesses Qualify for Alternative Business Loans
Businesses that traditionally have regular deposits to their accounts are naturally a good fit for alternative business loans.
- Clothing Stores
- Dry Cleaners
- Auto Repair
- and other retailers
But there are also other businesses that by their nature are easier to fund.
- Construction Companies
- Pharmaceutical Companies
- High Tech Business
Professional Offices also have a good chance of qualifying
- Dentists and Orthodontists
- Chiropractors and Integrative Medical Practices
- Doctors Offices
The Process for Applying for Alternative Business Loans
iBank Corp. uses a one-page application form. You can expect to provide basic information about your business. Company information, ownership information, and bank account verification. For more information on qualifying quickly for a loan visit related articles on our blog. The amount you will qualify to borrow will be based in part on your monthly deposits. Because so little business verification is required, our lendings can typically make a very quick decision on your loan. A decision and funding can happen as quickly as 72 hours.
To find out how much funding your business qualifies for fast, call us at (877) 302-2170