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How to Qualify for Unsecured Small Business Loans

Unsecured Small Business Loans are Available but Not Through Traditional Banks

Wouldn’t it be great if your business had access to unsecured small business loans whenever you needed it? Before the 2007-2008 financial collapse, it was relatively easy to walk into a bank that you’ve been doing business with for a while and apply for a line of credit that you could access whenever you needed money. Let’s face it, businesses are volatile and subject to all kinds of unpredictable cash needs. Even extremely healthy businesses will experience lots of periods in their life cycles where they need capital to survive or take advantage of great opportunities.
However, today, banks have very little to offer in terms of quick and easy business loans and lines of credit even if you have great credit. If you have poor credit you can forget about a loan from a bank. You can also expect long application forms and long delays. The loan process with a bank can take as long as three months before capital is accessible. This is long enough to have your business in serious trouble or miss that golden opportunity.
Fortunately, private lending options have provided a ready solution. Because private lenders don’t have stockholders to be accountable to or strict lending regulations to abide by. They can make decisions based on a different set of criteria than your credit score. Like banks, private lenders are concerned about getting paid back with interest. So they focus on your businesses good cash flow and deposit history as a sign of your ability to pay back your loan.

Cash Flow Requirements

Private lenders will want to see regular deposits into your business account. The more frequent the better. Credit card deposits can be a real plus because they tend to be rather consistent for most businesses. Private lenders know that a retail businesses credit card deposits will most likely continue at or near the rate they have been in the past and are a consistent daily activity. The loan amount you qualify for will be based on a percentage of the average monthly deposits into your account and the frequency of those deposits. As a benchmark, your business will need to be doing at least about $100,000 in revenue a year.

The Application Process

Instead of lengthy loan applications, private lenders can use a quick one-page account verification form to verify monthly deposits into your business account and to assure that you are the legal principle in the company and have the legal rights to make decisions for the company and it’s finances.
The basic business information you will need to obtain unsecured small business loans from private lenders. Unsecured business loans are loans that don’t require you as the business owner to put up collateral to secure the loan. Here is what you will need to gather, and you’ll be happy to know it is a very short list compared to the lengthy multi-page loan applications that a bank would require.
  • business contact information
  • an estimate of annual revenue
  • ownership information
  • a few months of company bank statements
  • credit check

Information Requirments in Detail

  • Business contact information. As simple as your business’s name and address and business industry.
  • Annual revenue estimates. A demonstration of the businesses ability to generate steady revenue. Private lenders like to see at least a year in business but businesses in business for as little as three months sometimes qualify. – General business information. Your business’s federal tax ID number, what kind of company you are (e.g., LLC, partnership, corporation, or sole proprietorship), and the date you incorporated.
  • Ownership information. Who owns the business and what percentage of it each individual owns. Their identifiable information including birthday and Social Security number.
  • Bank statements. Three months of bank statements are often sufficient. If they aren’t particularly strong, you may have to submit relevant tax documentation as well.
  • Credit Check. But don’t worry if your credit is less than perfect. Private Lenders as much more forgiving than banks and weigh your deposit much more heavily in their decision making. Private lenders will often even work with businesses that have had a recent bankruptcy as long as it is more than a year old.

Approval Process

With this information, you’ll be able to get pre-qualified for an unsecured small business loan in as little as 15 minutes. Final approval can take about 24 hours. The entire process from inquiring to funds being transferred to your business account can take as little as 72 hours. Giving you the quick turn around time to make payroll, fulfill that large order, cover cash flow shortages or take advantage of that great business opportunity.
Unsecured business financing is some of the fastest financing available to small business owners and a source for easy business loans. Another great advantage of doing business with banks is, you can use the funds for any business purpose you like in contrast to bank loans where they can be earmarked for specific use.
If your small business is facing a cash crunch we’re here to help. Apply for unsecured small business loans today and get the money you need to grow your business tomorrow. You can download the easy business loans application here or contact us for help. (877) 302-2170