What are small business loans? Check out this overview!
Small business owners and startup founders know the significance of getting funds in time. Sometimes, despite the best planning, there comes situations, circumstances and opportunities that require immediate financing. A small business loan is designed for such situations. With options like Accord Financial small business financing, it is possible to get loans up to $75,000, repaid within a limited period. Small business loans are usually for a short period, not exceeding 18 months. In this guide, we will discuss further on small business loans.
The basics
It is important to note that small business loans are limited-period small loans, which are to be repaid in easy installments, typically weekly or monthly. Whether it is about managing an unexpected need for working capital, or capitalizing on a new opportunity, small business loans can be handy. These loans can be used for repairing & buying equipment, to fund inventory purchases, or even for expansions.
How quickly are small business loans approved?
Depending on the service selected, small business loans can be approved and credited within one to two business days. Many lending services actually streamline the process, and approval is usually assured within eight to ten hours. In short, you can expect quick finance, within days, as long as requirements are met.
How to apply?
Small businesses that wish to use this form of lending must be incorporated in USA or Canada and must have been in existence for at least 2 years or more. Lenders are also interested in growth rate and financial performance of the applicant. In many cases, such loans are only approved if the small business has a certain amount of annual sales. Credit history may not matter in some cases, but better credit history is appreciated and desirable. The term for small business loans varies between three to eighteen months.
Things to know
Note that these are unsecured loans, which means that the lender is taking a huge risk. Expectedly, small business loans are expensive and should be used after considering all terms & conditions. If your company needs more money, make sure that you go for asset-based lending, which is secured advance and has flexible repayment schedules. Select the right lending service for small business loans, because you need a dependable service that can offer quick approval and doesn’t have too many complicated requirements. Small business loans can resolve financial issues effectively, provided used for the right reasons and after considering pros and cons.
