Every type of business requires some type of loan or line of credit for a wide variety of reasons: start-up capital, equipment, inventory, office rentals, etc. Because every business and every owner is different and has unique circumstances, the easiest business loan to get is your own. Else it may not be easier for you.
For start-ups or companies with no credit history or bad credit history, it can probably be difficult to get traditional bank loans. Also, with a low credit score, your interest rate will be high, even if you are approved for a loan.
Lenders usually look at more than your credit history. Other factors include your time in business, industry, your personal credit score, whether you have had any recent bankruptcies or defaults, balance sheet, business licenses and permits, tax returns, purpose of the loan, proof of collateral, and many other reasons.
If you believe your financial situation is likely to improve, you will need to provide documentation to prove this. Always have your documents and financial files ready and organized anyway, so you can get through the application process as smoothly as possible.
Are SBA loans the easiest business loan to get?
Many people do not consider SBA loans and long-term loans the easiest business loan to get, as the application process is quite long and complicated. Only consider SBA loans and traditional long-term business loans if your credit score is high and all of your financials are prepared and ready to go. However, the application process may take some time, so you will have to wait for approval.
If you need cash ASAP, there are options like merchant cash advances. This type of offer will help you access capital. You will receive a lump sum cash payment, but you will be expected to give up a portion of future sales. You will be responsible for paying off the loan itself plus the fees. Although there is no set fee, $15 for every $100 borrowed seems to be a fairly typical amount by many cash advance dealers.
Invoice financing and equipment financing are very similar with their requirements. Previously, you would need to show details of your unpaid bills, as well as bank statements and other financial information. With the latter, you’ll need to explain what kind of assets your company needs to purchase, provide a quote for equipment, business tax returns, bank statements, and so on.
There are many other options for businesses of all sizes thanks to the internet. Online lenders are popping up all the time, although it’s best to stick to one that’s been around for at least a decade. Start your search with US Business Funding, a BBB certified company. They will help you find The easiest business loan to get to your needs.