How Alternative Business Funding is Different from a Bank Business Loan

Getting a bank business loan is not easy anymore. It is no secret that times in the lending industry have gotten tough. Banks have tightened their lending standards in recent years. So much that over 75% of business owners are turned down for a bank business loan. Simply because they do not meet the impossible requirements that banks have implemented. This can be extremely frustrating and de-motivating to many hard working business owners. At eBusiness Funding, we hate to see those who are putting everything they have into their business, be turned down when they need funding. That is why we are here to help with our merchant cash advance product.

How is a merchant cash advance different from a traditional bank business loan?

Unlike traditional bank rules, eBusiness Funding is different. We have different standards that we can adhere to because we are not regulated in the same way by the government. Let us show you how we are different from the following business bank loan requirements.

Must be used for an approved business purposes.

When it comes to a business bank loan, the institution is going to want to know exactly how you plan to use every dollar. This will often be documented in a detailed business plan. The plan will outline your business goals for the next three to five years. However, unlike a bank, eBusiness is not interested in your full plan. If you have one that is great, we just don’t make it a requirement for funding that you provide it to us. We trust you to be able to make the best decisions for your company. And we want to see you succeed as much as you want to see yourself succeed. We just do not need a written document from you to prove that to us. That means if you need to use our cash advance for covering your payroll, you can.

Perfect Credit Scores

Unlike a bank that needs to determine if you are creditworthy or not, we are not going to ask to see them. We also will not run a credit report on you. We know that young businesses make mistakes and we are tired of companies being punished as they work to rebuild their credit scores. Instead, we only have two requirements.

• Your business has been fully operational for at least six months.
• You are generating at least $10,000 a month in revenue.

If you can meet these two requirements, you have a 90% chance of being approved for a merchant cash advance with us.

Appropriate Amount of Collateral to Put Up Against the Loan

A business bank loan is often secured by collateral. When you sign the dotted line with a bank, they are asking you to make sure that if you default on the loan, they will be covered with something just as valuable. At eBusiness, we don’t want your things. For us, it is a true pain to sell them. And at the end of the day, we are in the business of advancing funds not selling products or real estate.

eBusiness Funding is Different

We have never claimed to be a bank nor do we want to be. Being an alternative funding provider affords us the opportunity to work with some great businesses. We love getting to know the people who use our funding source. Getting the cash you need quickly, can make all the difference when it comes to growing your business. It is also nice to know you have someone who really cares about you and your dreams. So what are you waiting for? Apply with us today to start achieving all of your goals!

Best Bank Business Loan Alternatives

It used to be getting a bank business loan was simple. All you had to do was visit your local branch. You would ask what type of business loans they were offering. You would ask about their rates. And you may even ask what specials they were promoting that month. There was really only one place to go and that was the bank. If you were lucky there would be two different banks in your town so the rates would be competitive.

But today’s world is completely different. Times have certainly changed. Both physically and digitally. The current state of the lending market is evolving to meet the needs of the modern day consumer. You can apply for a loan online and never have to set foot in a bank. Not only that but you also have a wider variety of alternatives to a traditional bank business loan.

What are the alternatives to bank business loans?

Crowdfunding

Peer to peer lending is on the rise these days. Businesses are looking to the average consumer to help grow their business. Crowdfunding focuses on pooling the collective funds from a variety of different parties. This is primarily completed through digital platforms including social media.

Businesses will leverage their own personal networks to begin with. The sharing will continue through their friends and family. There are a variety of crowdfunding options to offer incentives to people to help fund your campaign.

• Donation

• A donation with no expectation of return. This funding is often typically seen for non-profits. It is also often used by disaster relief groups. But it can also be used for businesses.

• Rewards

• The reward option that typically offers lenders early access to a product, a discount or free product. Businesses who raise funds this way are not offering equity into the company.

• Equity

• This method allows lenders to become part-owners of the business.

As a business owner, it is important to know what type of crowdfunding you are doing. You also have to be transparent to your lenders. Leading them to believe they were getting equity when they were donating can lead to lawsuits down the line.

Business Credit Cards

A business credit card can be a powerful tool to empower your employees to make purchasing decisions. It also gives you quick access to cash to be able to buy necessary supplies. But having a physical card that your employees are responsible for can be a risk. Fraudsters, whether online or in-person, are always looking for unsuspecting credit card holders.

Merchant Cash Advance

A Merchant Cash Advance is an alternative to a bank business loan. Though similar to a bank business loan, a Merchant Cash Advance does not have the same strict regulatory standards. At eBusiness Funding we only require that your business does at least $10,000 a month in revenue and has been in operation for 6 months or longer.

How Does A Merchant Cash Advance Work?

1. Applicants apply through our simple form on this page.
2. We review the application and respond within 24 hours letting you know if you have been approved.
3. If you are approved, you can receive between $5,000 to $500,000 in three days or less.
4. You can then start using the funds to meet your business needs.
5. In exchange for the funds, we will take a fixed percentage of your business’ daily sales (Monday-Friday).
6. This process is continued until the advance and fees are completely paid off.

We believe that a Merchant Cash Advance is a great alternative to a bank business loan. As a business, understanding what is going to be the best option for you is important. If you feel a cash advance could be right for your business’ loan needs, contact us!

Getting Started

Call eBusiness Funding at 305-985-6604 or complete the contact form on this page now!