What to Do If You Are Unable To Get an SBA Loan
Due to the restrictions, the requirements and the overall process, SBA loans can be quite challenging to get. Many have tried, but ultimately are unable to procure SBA funding. Don’t be discouraged! There are other options available. Other funding sources that you can access to get the cash you need to keep your business running efficiently.
3 Options to Consider Instead of an SBA Loan
What exactly is a medium-term loan? While tending to be smaller than what an SBA loan might be able to offer you, medium-term loans are structured quite similarly to a traditional SBA loan. Generally, by enlisting the services of an alternative lender, you can find financial products of this type and without the more stringent guidelines to which the SBA must adhere. Not to mention, for those somewhat less-qualified consumers, the medium-term loan is a very viable option. Keep in mind; there may be a higher rate associated (7-20%), but then again, the speed at which you receive funding is much faster than with more traditional loan products.
Business Lines of Credit
A line of credit could be exactly the product you need to get financing fast. These are usually easier to qualify for than an SBA loan and can also be procured from alternative lenders such as First Union. Interest rates on these tend to fall somewhere between 8-30% and the turn around time as far as closing can be as quick as 24 hours. The other thing to note is that with a business line of credit, you are in the process building more credit and thus improving your chances of future funding.
Unsecured Business Loans
With an unsecured business loan, you are usually required to do daily, sometimes weekly or bi-weekly ACH payments. Terms on these types of loans are shorter—ranging from 3 – 18 months. Now while this can be a more expensive financial solution, less-qualified borrowers do have a solid chance of getting the funds they need. What’s more, getting those funds quickly. With First Union, our unsecured loan products feature a straightforward application process and are available for those with credit scores over 500. If you need money to help your business thrive, we would be more than happy to see what type of loan might be a good fit for you!