Small businesses thrive on big ideas, but they also depend on easy access to capital through small business loans. The great advantage of small business loans, is the flexibility when it comes to credit qualifications and terms. However, choosing the right financing isn’t always straightforward, as it depends on the business industry you are in.
To help you in your search for financing, we’ll go over the following aspects of small business loans:
Let’s start by taking a look at the various ways you can use a small business loan in order to fill a specific financing need or to expand and grow your business.
A spike in sales, entering a new market, or a business acquisition requires capital to finance your expansion plans. Securing funding is vital for growth.
Your ability to meet customer inventory demands directly impacts your sales. Using business financing to buy inventory is critical for product wholesalers and retails.
Even the best business idea won’t go far if no one knows it exists. Proper funding through small business loans is a great way to launch that marketing campaign.
Having sufficient cash flow is essential for your business’s daily operations and expenses. Inject funding into your business to finance your everyday needs.
Giving your business an update or facelift adds real value. Renovation financing gives you the funds to make improvements without impacting cash flow.
Owing business tax payments to the IRS can be a stressful financial situation. Use tax debt loans to avoid fines that can put you and your business in financial jeopardy.
If business cash flow is tight, you want to minimize the effect it has on your staff. Use payroll loans as a form of gap financing to avoid any delays in paying your employees.
If your business relies on equipment to maintain operations, you know the importance of being able to replace these items. Getting the cash to buy new equipment is vital.
Apply with a one-page form and recent bank statements, no matter your credit score.
We offer early payoff discounts, flexible payment schedules and transparent fees.
Funds sent electronically to your bank account for fast access to your cash.
Finding the right small business loan program for your business means matching your needs to a lender that can provide targeted solutions. To do this, lenders will perform a basic check on the finances of your organization using a few different methods.
In most cases, business lenders will look into a few basic details about your company before approving a loan:
Cash flow is a measurement of how much money a business is bringing in over time. Lenders prefer to see positive cash flow in which more revenue is coming in than there are expenses going out, which is not always the case for new small businesses that are applying for small business financing.
A measurement of credit history that takes into account any previous relationships you or your business have established with other lenders. A high FICO score indicates you or your business have demonstrated a history of using credit and paying it off on time. A low FICO score may not necessarily disqualify those borrowers seeking small business loans, but a higher score will improve those chances and potentially lead to more favorable financing terms.
The amount of money your business generates through sales alone. This is essential knowledge for lenders, as most are less likely to agree to lending a business more than it can pay back. Loan values greater than the borrower’s revenue are not unheard of, but they are a riskier and more expensive prospect for both parties.
Lenders that offer business loans, will examin how long your business has been in operation. Small businesses established for less than one year are usually considered “start-ups,” and require loan programs with different standards and terms.
We consider all credit scores during the application process. Don't worry, a low FICO score is not an immediate disqualifier.
In most cases QuickBridge's small business loans application process simply requires a driver's license and three month's worth of verified bank statements. However, other lenders may ask for different types of documents to verify certain details about your business. These may include:
To avoid situations of fraud, the majority of lender that provide business loans will typically use your driver’s license in order to verify your identity during the application process.
Most alternative lenders as well as major banks that offer small business loans will almost always require your company bank statements. The lender will want to review your business bank account’s balance and recent transactions.
Tracks how funds flow into and out of a business, demonstrating how revenue from sales is converted to profit after all expenses are paid.
Shows how the business owner earns an income from their organization, as well as how their assets and liabilities are related to the business.
Gives lenders a more in-depth understanding of how a business operates, including how it manages tax liabilities, asset depreciation and more. Some lenders that offer small business financing may ask for these documents to determine your credit worthiness.
A high-level look at everything of value associated with a business. The balance sheet usually breaks down the value of all assets (property, cash, accounts receivable), all liabilities (outstanding debt, bills, accounts payable) and the total equity in the business (derived from the difference between assets and liabilities and distributed among owners and shareholders, if applicable).
We do away with all the messy paperwork. A copy of your driver's license and recent bank statements are typically all we need.