it’s easier to get a small business loan than you think. The reason most small business owners don’t get financing is because they’re looking in the wrong places.
Here’s everything you need to know about where to get a small business loan - as well as how to apply, qualify, and compare options so you get a good deal.
Here’s a quick history lesson: the 2008 recession sent banks into a tailspin. The government bailed out most of them, and then implemented stricter regulatory rules and restrictions in an effort to protect us from future recessions. Sure, our economy has bounced back since then - but it’s been much harder for small business owners like you to get loans through traditional lenders.
The traditional small business lending process goes a little something like this:
So, yeah, trying to get a small business loan from a traditional lender is painstaking, slow, and not likely to result in approval. It’s a bummer… but there are other solutions.
Have you heard of lending marketplaces? They make it easier to get a small business loan by streamlining the application process and connecting you to an entire network of lenders. There are a few out there but we’re the largest small business lending marketplace in America. Seriously. We’ve helped small business owners get more than $750 million in loans.
Just how fast and easy is it to get a loan through a lending marketplace? Well, let’s use ours as an example:
Cool facts like this are why more and more small business owners are turning to lending marketplaces. In fact, loan origination through lending marketplaces increased a whopping 700% in a 4-year timespan after the recession - and it’s still growing.
We talk to plenty of small business owners who think they’ll never qualify for a loan because they’ve been rejected by a bank or two - but that’s not true. About 65% of small business owners who apply through Lendio get financing.
You don’t need perfect credit or a decade of time in business to get a loan. In addition to credit and time in business, lenders often look at a variety of factors to determine if they’ll offer you a loan. These include:
Leveraging collateral can also make it easier to qualify for a small business loan.
First, fill out the online application. Ours is free and takes just 15 minutes. It’s also secured with bank-grade encryption and SSL technology, so you know your information is safe.
You’ll answer a few basic questions like:
All you have to do is fill in the blanks. That's it.
Second, you get matched with loan options from our network of 75+ lenders.
Third, approving lenders send you offers. You get to compare offers and pick the loan option that’s best for your business. If you need a little guidance, we have personal funding managers standing by who can walk you through everything and help you determine the best choice for your budget, needs, and goals.
Finally, you get access to more working capital. While funding times vary by loan type, you can often use your small business loan in as little as 24 hours after approval.
There are 75+ lenders in our marketplace, which means that there’s no shortage of financing options. Most small business owners are familiar with things like term loans and SBA loans, but many are surprised to find out that there are actually several types of small business loans to choose from. There’s a small business loan out there for just about any need.
Here are just a few cool ways you can use your small business loan:
Don’t make the mistake of thinking you’ll be overwhelmed by all the different loan options. There are really just a few simple questions you can ask yourself to hone in on the one that’s best for you:
If you’re looking for money now and are expecting a pretty quick return, for example, you’ll probably prefer a short term loan. But if you just need a quick way to build credit and want a financial safety net in case of emergencies, a line of credit may be your best option.
You also don’t have to go through the selection process alone. You can ask our team of expert personal funding managers for guidance. They can explain different loan options, help you figure out what you need, walk you through submitting any required documentation, and assist you in the decision-making process.