Applying for bank loans when your business needs money for working capital or expansion seems like it should be a straightforward process. Unfortunately, that’s rarely the case. Not only can bank loans be difficult to qualify for, but processing can take weeks or months even when you do receive an approval. It takes two weeks on average for a loan officer to even look at your application and up to 60 days after approval to receive your money. This is just one of several possible disadvantages to bank loans.
Qualification is Difficult, Especially for New Businesses
Ever since the financial crisis from approximately 2008 to 2010, banks have gotten even stricter about the approval criteria for business loans. Your odds of approval are right around 50 percent, which can feel like little mor e than a gamble when your company truly needs the money. Some of the most common reasons for banks to reject applications for business loans include:
- Poor credit, either recently or in the past
- Little to no credit as a business if the company just opened or is still in the pre-launch stage
- Inconsistent cash flow and profit margins
This can be enough for some people to give up the dream of owning their own business. That doesn’t have to be the case since you can always pursue other options.
Customers Owe You Money? Explore Invoice Factoring with OneClick Commercial Funding
Even the newest business usually has money owed to it. If your company has any outstanding receivables, why not put them to work for you in the form of invoice factoring? That means OneClick Commercial Funding purchases your unpaid invoices, provides you with immediate cash, and collects the total from your customer later. To learn more about this and other business financing options, including fees and interest, please contact us today to request an appointment.