Commercial Bank Loans vs. Small Business Loans: Which is Best for Your Business?For business funding a lot of people turn to their banks without giving it much thought. Most banks offer both commercial and personal loans, and many business owners simply assume that the commercial loans are the best option. You need to know that there are other options out there. There are loans, like ours that are specifically designed to be small business loans. So which is best for your business? Let us help you decide.
Small Business Loans Can Be Small or Large
One of the biggest differences between commercial loans offered by banks and those designed as small business loans is the loan amount. Commercial loans are generally large loans. They are designed for bigger businesses. Banks don’t want to offer smaller loans because they are not worth the effort, but for business owners this makes borrowing very inflexible. With small business loans you can get anywhere between $2,500 and $250,000. You don’t have to borrow more than you need, which can save you money in the long run.
A Low Credit Score is Not Always an Issue with Small Business Loans
If you aren’t sure you can get approved for a bank’s commercial loans, you have another option with small business loans. As with the amounts offered, the requirements for getting approved are set with small business owners in mind. You don’t have to have perfect credit, huge revenues, or years of business operations to get approved for these loans. In fact, the minimum requirement for your personal credit score is just 500. If you can beat that, you qualify and won’t be turned down for bad credit.
Money Moves Faster with Small Business Loans
Bank loans may be the right options for your business funding, but not if you need the cash quickly. Most banks will take a week at least to finance your loan. With our small business loans most borrowers get the cash in about three days. Getting money quickly is often important for small businesses because things change quickly when your operations aren’t huge. You need that cash quickly to stay afloat and avoid a catastrophe, and that’s when loans like these are so helpful. Fast cash just may be what keeps your business from failing.
Apply Online for Small Business Loans and No Hassle
To get a loan from your bank, you will actually have to go in to your bank. That may be fine for some business owners, but if you have a small business you probably don’t have time to waste. You may not even have anyone else to keep things running while you take the time to spend hours at the bank. Instead of all that, go online and spend just a few minutes applying for small business loans.
There are some valid reasons that business owners go to the bank for a loan, but there are some even more compelling reasons that small business owners may want to avoid the bank and choose our small business loans instead.