So you are looking to get a Business Loan for your company? There are several things to take into consideration.
When looking for commercial finance for your company, there are many things to keep in mind. To start with, a bank will nearly always be less expensive than a non-bank alternative business lender – that is a given.
But when the bank turns you away for business funding, this can happy for many reasons. In general, bank funding will require the following:
- Two years of third-party audited financial statements including your Balance Sheet, Profit and Loss, Detailed Accounts Receivable and Accounts Payable. The statements must show the business is profitable.
- Two years of tax returns and confirmation from the government that the returns have been accepted.
- Two years of bank statements.
- Personal and Corporate Net Worth Statements.
- Articles of Incorporation to show the company has been formally organized.
- Identification of the owners of the company.
- Confirmation that the owners of the company are willing to give a personal and corporate guarantee for the amount of funds to be borrowed.
If your company cannot provide all this information, there is a strong likelihood the loan will not be approved.
Alternative, non-bank lenders, such as IMMFinancial.com, which is one of the many Fintech Lenders that has been evolving since the year 2000 will have guidelines which are more aggressive than banks can offer. As mentioned, the cost will be higher than a bank, but missed opportunities will cost you much more than the slightly higher fees charged by such type of business lenders.
Generally speaking, depending on the size of the loan you want to get for your company, you may only need the following to be considered for business financing:
- Three months of bank statements.
- Articles of incorporation
- Identification of the business owners.
- Credit report showing a score of at least 500.
The programs will vary depending on geography, and alternative lenders such as IMMFinancial.com may have various programs that can be integrated together to create the business financing facility that best suits your business need.
For example, many times when a company has been approved for a business loan, they may also get an approval for an accounts receivable factoring facility which will give the company a line of credit based on the outstanding accounts receivable of the company. Or, the company may be approved for equipment finance so that the business loan does not need to be spent to buy equipment. The business loan can be used to pay expenses of the company and manage cashflow.
Not all non-bank alternative lenders are equal
One last thing to mention in closing, not all non-bank alternative lenders have all the same program offerings – some will have only factoring, or only business loans, or only equipment finance, or only inventory finance, and so on. IMMFinancial.com has all these programs, and more.
Ready to get funding for your business? Let’s Get Started!
Other options
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
Learn more
Thinking of expanding your business? Introducing a new product line? Or maybe you're just trying to add some cushion to your cash flow? Whatever r ...
Whether you plan to start a new business in 2016, or are looking for funds to expand your company, employ more staff, purchase larger faciliti ...
Everyone will have to face a critical situation and they may need a considerable amount of money to handle it. In such situation, they cannot find ...
Personal loans are a great resource for a wide variety of financing needs. Many people use an unsecured personal loan to start a new business rath ...
The asset loan process is similar to that of obtaining a bank loan, without all the paperwork. A couple things to remember before explaining the p ...
