Small Business Loans
Insider info for getting the best loan for your small business
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We’re gonna let you in on a little secret...
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.
The slow way to apply for a loan (and probably get rejected): traditional lenders
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:
- It takes an average of 29 hours to apply with a traditional lender
- Small businesses who manage to get approved wait 2-3 months to find out
- Traditional lenders reject 80% of small business owners
- After approval with a traditional lender, it takes about 90 days to get funding
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.
The faster, easier way to get your loan: small business lending marketplaces
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:
- Our online application takes just 15 minutes
- We give you access to loan options from a nationwide network of 75+ lenders
- You can get approved within a few days, and sometimes in as little as 24 hours
- We find funding for 65% of the small business owners who apply through Lendio
- Funding times vary by loan type but you can often access your capital in as little as 24 hours
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.
Give our marketplace a try
It’s not hard to qualify for a small business loan
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:
- The type of loan you’re applying for
- What your financial projections are
- How you plan to use your loan
- What industry you’re in
- What your monthly revenue is
Leveraging collateral can also make it easier to qualify for a small business loan.
Here’s how to apply for your small business loan through a lending marketplace
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:
- What industry your business is in
- How long you’ve been in business
- How much your monthly revenue is
- How much debt your company has
- How you plan to use your loan
- What your credit score is
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.
See if you qualify for a small business loan.
You can choose from tons of small business loan options
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:
Use a startup loan to turn that clever idea into a profitable business
Use a business acquisition loan to buy that franchise or local shop you’ve had your eye on
Get access to extra funds with a business line of credit or business credit card
Increase your cash flow with a merchant cash advance – or speed up your cash flow with accounts receivable financing
Leverage a commercial mortgage to buy, build, remodel, expand, or even refinance your business space
Or use a standard term loan, short term loan, or American Express® Merchant Financing for, well, just about anything
Finance that new backhoe, software system, or hi-tech espresso machine with an equipment loan
The right choice? Whichever loan is best for your small business
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:
- How much financing you can afford?
- How do you plan to use your loan?
- How much will the loan cost 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.
