18 Business Loan Requirements
14 – Loan Amount
So you have decided that you need a business loan, now you need to figure out the total amount you want to try and procure. With typical banks, generally, they like to deal with larger amounts. They have more capital than other types of institutions, for example, if you require a seven-figure loan, they might be the better option. The reason they prefer dealing with bigger loan amounts is that regardless of loan size, the servicing time and effort are the same. They happen to make much more profit on a $1 million dollar loan versus a 100k loan.
If you are thinking that the amount you need is less than 250k, then an alternative lender will probably make more sense for you. Why an alternative lender? For one, the process is much faster and generally a lot easier. At First Union, we’ve had clients funded in as little as two days time. And with products starting at 5k, we have a great deal of flexibility in getting you the dollar amount you require. For whatever purpose you may need a business loan, be it equipment, real estate, inventory, to boost cash flow, we now that we will be able to help.
Keep in mind, because the process is so streamlined, with nowhere near the wait time you’d encounter with a traditional lending institution, there are usually higher rates associated. Then again, the loan term is shorter, thus you are paying out less interest given the duration. If you have any questions at all, we would love to sit down with you and talk them through. Each of our clients has a dedicated advisor on hand to address their needs. Give us a call today and let’s get you the money you need to help your business thrive
You’re reading part 14 of our 18-part series: 18 Business Loan Requirements.