Businesses in need of funding generally turn to traditional banks, they fill out a ton of paperwork, they hand over the details of their life and business, they hold on to hope. After all of this, denial. How does a business owner get back on their feet after a bank turndown?
Don’t Give Up!
When banks turn down businesses for loans, there is a sense of defeat left behind. Business owners often feel like they have reached the end and will give up. It is helpful to know that approximately 80% of business loan applications are denied by traditional banks.
Alternative lenders are often a business owner’s saving grace. With huge networks of lenders and investors, alternative loan brokers are able to get businesses the funding they need to be successful. Loan applications can be intimidating and confusing, a business loan broker will help to decipher these documents and assist with preparing business owners for the application process. By building trust with both clients and lenders, business loan brokers are the best alternative to traditional loans.
Research Loan Types
Before applying for any loan, whether through a traditional bank or an alternative lender, it is helpful to have some amount of knowledge of the types of loans available to you. As a business owner, it is recommended that you research loans that could help your situation before applying for anything. If you are in need of funds to purchase machinery or large equipment for your business, you will want to decide whether an equipment loan, or lease will better suit your needs. The same thing applies for inventory loans, real estate loans and small business loans. There are loans available for minority business owners, female business owners and even for specific types of business. Your loan broker should be able to provide you with more information and assist you in determining the best loan type for your situation.
Locate a Broker
When you begin your search for an alternative loan broker, you will want to make sure that you are focusing on trust and knowledge. Your loan broker should have a good track record of providing funding to businesses in need. Ask for references and examples of funded deals before you make the decision to apply for a loan with them. If a loan broker denies the request for references, you can be sure that they are not trustworthy, move on.
Do Your Research
Your loan broker should be a valuable source of information and should be able to assist you with the loan process. Applying for loans is complicated and often takes time, your loan broker’s job is to make the process easier on you, the business owner. When you have a question or concern about the loan application, your broker will be the first person that you should be able to turn to. If you find that your loan broker does not have the answers for you, or turns you away without researching the answers at all, it may be a sign that this broker isn’t the right one for you.
When you are turned down for a traditional loan, don’t give up. Alternative loan brokers are the saving grace for business owners in need of funding. When you know what to look for, finding a loan doesn’t have to be an intimidating process. An alternative loan broker will provide you with the assistance and knowledge that you need to get the funding that your business deserves. Alternative Funding Partners is here to help you obtain the necessary funding to make your business successful. Bank loan turndowns can be defeating and make business owners feel like they have nowhere to turn. Turn to Alternative Funding Partners and let us help you get the loan that you deserve.