On the other hand, easy small business loans can move your company to where you least expect and within a shorter time. Now if you’ve got the vision for your company but finance is the limitation that will no longer be the case given that there are several online lenders and credit unions for small business loans.
Factors to Consider Before Obtaining a Small Business Loan
First off, you’ll need to consider the following factor before venturing into the bank or accessing an online platform to register or request for a loan. It will increase your chances of getting while also ensuring that you don’t create more expenses for yourself in the long run.
1. Have a Business Plan:
A lender is about to entrust their money into your hands and as such, you should give them a good reason why they should do so. It begins with drafting a well-detailed business plan of what you hope to achieve and in the near future.
2. Have a Good Credit Score:
To increase your chances of getting a loan and even make the process faster, then you need to have a good credit score. If you currently have a bad or no credit, then try and make amends to fix it or get a co-signer whose credit is excellent. Nonetheless, there are several online lenders that are still willing to give a small business loan even if a borrower has bad credit.
3. Use Several Options:
The good thing about loans is that there are a lot of options you can settle for and the policy of some differ from others. Therefore, there is a possibility of getting something better out there. You could check out banks, online lenders, and even peer-to-peer lending organizations in order to weigh your options.
Review of the Best Small Business Loans for 2019
You can either decide to get a loan from the bank or online platform depending on what works for you. In our review below, we’ll be pointing out three of the online lenders for small business loans. They have been selected for their fair policy, better interest rate, and ease at which the loan can be acquired.
LendingClub is a peer-to-peer lender based in the United States and there are certain criteria that have been set before its loan can be obtained. For starters, your business must be at least 12 months or more and you must record about $50,000 in annual sales. In the same vein, a fair or good personal credit is needed in order to stand a chance to get funded.
If the loan that you are obtaining is less than $100,000, then collateral will not be required by this company. There won’t also be a need to send business projections, but then the APR for LendingClub loans is under 10 percent.
Kabbage offers one of the best small business loans and it requires that you have a PayPal account of business checking account before you can apply. Amazon, Yahoo, eBay are some platforms where your business data will be examined by the company in order to ascertain how legit your business is. Likewise, you can get as high as $150,000 after applying and the loan has a repayment period of six months, two months, and even four months. The interest rate could range from 1% to 13.5% and you could be looking at an APR of 90 %.
There are no hidden fees given that the application process is free. To access your funds, Kabbage provides a website and mobile application each of which features your dashboard. While the principal fee is set at around 1 percent per month, it could grow after a period of time thereby reducing how long before repayment is made.
Fundation is a direct lender which ensures that you can get funds the same day applications are sent. With Fundation, you can get between $20,000 to $500,000 as a loan whose repayment period can range between 1 to 4 years. Its APR also has a range of 7.99% to 29.99%. On the other hand, you will need to be an established small business with high credibility before you can obtain a loan from this company. As a result, new businesses might find it hard obtaining loans from it.
It is also worthy to note that this lender does not apply additional fees to its loans after the origination fee is paid, which is one of the perks of settling for it. Several businesses in different regions in the U.S. can get funds except for Nevada, North Dakota, and South Dakota.
You can decide where your business will be and its competitiveness in a few years time from today. It all starts with obtaining one of the best small loans for businesses in 2020. The interest rates of our selections are fair, thereby ensuring that you do not take a large chuck out of your wallet every month just to pay for loans.