You’re ready to grow your business—congratulations! Whether that means expanding your space, acquiring more inventory, or jumpstarting your marketing program, many growing businesses are stymied by limited cash flow or lack of access to working capital. That’s where banks and small business loans come in.
Not so fast—getting the working capital you need from a traditional lender like a bank is harder than you might think. What does it take to get a small business loan? You’ll have to compile up to a year’s worth of detailed financial information and navigate a potentially months-long application process, all with no guarantee of approval. Some opportunities to grow are short-lived, and you may lose out while you wait. Even if you do have the time to undergo the rigorous application process, traditional lenders reject most applicants for small business funding, preferring to fund larger corporations instead.
Here’s the good news: if you’re searching for working capital to grow your business, traditional lenders aren’t your only option. Alternative lenders like Greenbox Capital® offer flexible funding options that can be approved in as little as one business day.
Before applying for funding from a bank, there are a few things you should keep in mind:
- The larger the bank, the longer you’ll wait
- Loyalty and past business may not be worth as much as you think
- Small loans are typically rejected because banks don’t make much profit on loans for small amounts
Let’s take a closer look at what traditional lenders may not tell you about small business loans:
Large Banks and Long Applications
Some people prefer applying for funding a large bank because it has the appearance of a professional and well-oiled machine.
In the banking industry, bigger doesn’t necessarily mean better. Big banks require detailed paperwork to evaluate your suitability for funding, including your personal and business credit history, information about the size of your business, and what collateral you have to offer. That means you’ll spend more time waiting to hear back about your application, as well as any questions you might have along the way.
Bigger banks are also less likely to provide personalized services, with fewer funding options and less flexible terms. When you work with an alternative lender like Greenbox Capital, your Funding Advisors will take the time to get to know your business, its history, and its potential, so that they can connect you with the funding that will help you achieve your goals without sacrificing your cash flow.
Past dealings with or loyalty to a particular financial institution doesn’t guarantee your application for small business funding will be approved, or that you’ll be given favorable terms if your application is approved.
At Greenbox Capital, we view the small businesses we fund as partners, and we value loyalty and repeat business. Once you complete one successful round of funding, we can approve any subsequent funding even faster, often for larger amounts and with better terms.
Most traditional lenders will reject loans for small amounts because they don’t generate as much profit as loans for larger amounts, which typically take much longer to repay. If you need a small loan, your best bet is to apply for funding from an alternative lender. Most of our small business loans are between $20,000 and $60,000, but we can supply funding from as little as $3,000 up to $500,000. It’s all about what works best for your business, not our bottom line.
Applying for small business funding from a bank can take weeks or even months, and most applications are rejected, especially if you had low or bad credit or operate in a “high risk” industry.
Alternative lenders have different requirements for approval, which means they can approve your application and make your funding accessible much quicker—sometimes in as little as 24 hours—even if you have low or bad credit or are in a high risk industry.
Alternative lenders also offer flexible funding solutions that are tailored to your business’s unique circumstances. At Greenbox Capital, we know there’s no “one size fits all” small business lending solution. That’s why we take the time to get to know you and your business so that we can recommend the best funding option. We are here to fuel your growth, not compromise your cash flow.
How Hard Is It to Get a Small Business Loan?
We won’t sugarcoat it—getting a small business loan from a traditional lender is tough. The application process is long and intrusive, and most applications are rejected. When you work with an alternative lender, you can get the funding you need in as little as 24 hours.