Starting a business? Need some extra funding to jump-start your current business? Approved Cash can help you.
What is a Business Loan?
Business loans provide entrepreneurs the funding they need to turn their idea into a reality.
Many business models require a lot of upfront investment to get going, yet saving enough cash to launch a business could take years. Business loans can speed up that process.
Business loans aren’t just for new businesses, though — existing companies may take out a loan to expand or invest in new projects.
Business loans can be secured (requiring collateral) or unsecured (no collateral). Secured business loans usually have lower interest rates and better terms because the collateral you put down mitigates the lender’s risk.
Should I Get a Loan For My Business?
There are several reasons why you might get a business loan.
- Starting your business: If you don’t have enough capital to launch your business — maybe you need to purchase inventory, rent retail space, and hire staff — then a business loan can get you there. That said, you’ll need to be in business for at least a year to be considered for most business loans. Lenders prefer to see that you have cash flows so you can repay the loan.
- Expanding your business: Business loans can take your business to the next level. Maybe you’ve identified a new market for your product/service and want to market to them aggressively. Or perhaps demand for your product and you need to buy new machinery to make more. Either way, some debt now can pay off later.
- Establishing an emergency fund: When business is slow — or when the economy tanks — having spare cash can keep you afloat and ensure your loyal employees get paid.
- Day-to-day expenses: Sometimes, you come up short on working capital. In some cases, getting a loan to cover this deficit makes sense.
If any of the above apply to you, a business loan might be your answer.
How Do I Get a Business Loan?
First, determine what kind of business loan you want and how much you need. There are a few types of business loans.
- Accounts receivable financing: You sell your accounts receivable to your lender in exchange for a loan. Relieves you from having to track down invoices, plus you get money (although you have to repay the money).
- Business term loan: A traditional bank loan. These tend to have stringent requirements in terms of credit and financials. You usually need collateral as well.
- Business line of credit: You can borrow as much as you want up to a limit whenever you want, as long as you pay it off.
- Business credit card: Like a business line of credit, but you get a card. May come with a 0% introductory APR. Most let you earn travel or cashback rewards on your purchases and come with other perks.
- Merchant cash advance: An advance against your credit sales. You pay this back by having the lender withhold some of your credit sales revenue.
- Small Business Administration (SBA) 7(a) loans: 7(a) loans are bank loans guaranteed by the SBA. Since the government guarantees them, they come with great interest rates. However, the SBA loan process can take pretty long.
- SBA Express Loans: SBA loans with fast turnaround. Higher interest rates and lower principal amounts than SBA 7(a) loans.
Depending on the loan you need, you may have to increase your credit score (personal and business) and improve your cash flows to maximize your approval chances.
Once you’re ready, you can head over to our system, specify that you want a business loan, then give us the loan amount and your contact information. Our system will do the rest, matching you with a local lender within 24 hours.
Once our system finds you a lender, you speak to the them about your loan details and provide all the relevant documentation. After you finalize your loan terms with your lender, they will send the funds to you via check or direct deposit into your business bank account — whichever you prefer.
Now, you’re free to invest your loan funds into your business. Then, you’ll start repaying your business loan.
What Do I Need to Get a Business Loan?
Lenders demand a lot of financial information when considering you for a business loan. After all, they want their money back. Be prepared to give your lender the following documents.
- Bank statements (business and personal): Most likely a few years of each type of statement.
- Business documentation: They’ll want to see documents like your articles of incorporation, franchise agreements, lease agreements, licenses/registrations, etc.
- Business plan: Whether you just started or you’ve been running your business for years, lenders like to see you have a clear plan for your business.
- Credit report: You don’t need to bring this, as lenders can check it from their end. However, be ready for them to do so.
- Financial statements: Lenders need to see that you have assets (especially accounts receivable), cash flows, not too many liabilities, etc.
- Tax returns (business and personal): Most likely a few years of each type of return.
What Are the Benefits of Getting a Business Loan Through Approved Cash?
Finding excellent business loan options has never been easier, thanks to Approved Cash. You don’t have to do any web browsing to find good loans — just give us your contact information and loan details using the form on our home page. Our system will take it from there — matching you to the best lenders in your area based on your specific criteria.
We value your privacy and peace of mind — that’s why we give your business loan request to no more than 3 lenders. No more having your phone blow up with calls from 100 different lenders. Yet you’ll still get to take advantage of lenders competing for your business, helping you get the best loan terms.
Ready to Start or Grow Your Business? Submit a Request and Get APPROVED TODAY!
Submitting a request on our site will not affect your credit score.