All businesses need money to stay in business. Sometimes a loan makes the most sense to get access to the necessary funds. Unfortunately, many owners of small businesses think first of banks as the source for loans. Although there’s a bank around every corner, there are also many problems lurking around those corners as well. You see, banks are very selective about who they’ll lend to, and this way of doing business will continue into 2016 without letup. The reason is that there are increasingly stringent regulations placed upon banks regarding their loan quality and reserve requirements.
Banks
Let’s examine why banks can be such a hassle:
- No, No, No! -Without doubt, this is the bankers’ favorite word. Just about the only way to get a bank loan is to not need the money. Remember, no banker ever got into trouble saying no to a loan request.
- Lengthy Application Process– Banks must verify all the details and credentials about your business before offering a loan. This makes for a very long application process that leaves you slowly twisting in the wind.
- Cumbersome– The task of providing all the details that banks ask for is really cumbersome, and from the business owner’s viewpoint, completely pointless.
- Preference Given to Long Term, Established Businesses– If you only a year or two into your business, keep in mind that banks favor established businesses because they depend almost entirely on credit history before approving the loan.
- Long List of Prerequisites to Qualify for the Loan– Banks keep lengthy lists of criteria that your business must satisfy before they OK the loan. It is often not possible to jump through all their hoops.
- Entire Amount Not Granted– Banks are infamous for not agreeing to the full loan amount requested. They may condescend to offer 70 or 80 percent of the money you need. This complicates life for owners who need to run their businesses, since they then have to search around for the residual amount and find other lenders to fund the remainder.
Online Lending
Thankfully, you don’t have to enter this nightmare world to secure a business loan. On the forefront of the commercial lending industry stands IOU Financial, the better way to fund your small business. Why? Glad you asked:
- Yes, Yes, Yes! – We like approving loans and will bend over backwards to find a way to Yes. We don’t have an inhuman loan committees standing over our shoulder questioning every decision we make. You deal directly with the decision maker, so you always know the score. And that score is: we pre-approve 85 percent of all applications! One reason is that, unlike banks, we value cash flow as much as credit.
- Easy Peasy- We don’t rely on your credit history to decide on a loan. Therefore, we don’t need to spend tons of time investigating every aspect of your life. Our streamlined, online application process is super quick and easy. You can get funded in as little as 24 hours.
- Affordable Rates- You’re not paying for a lot of bureaucracy when you borrow from us, and that allows us to keep our rates affordable. We are 50 percent cheaper than merchant cash advances. Furthermore, there are no upfront costs to qualify for a loan from us, and we charge simple interest so that you only pay interest on the unpaid balance, with no compounding.
- Friendly, Not Scary- You repay a small portion of your loan every day, automatically deducted from your bank account. It’s pain-free and much friendlier than the monthly bill from the bank. You can also renew your loan once you pay back 40 percent of the principle, and there is never a prepayment penalty.
The next time you need a business loan, remember that you don’t have to go to a bank. Make the better choice – choose IOU Financial for loans up to $150,000.
