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!

Is a Bank Business Loan Right for My Company?

When it comes to funding your business, a bank business loan is a great option for the companies that can qualify for it. Unfortunately, many do not. But why is this the case?

The requirements for a bank business loan are not as clear as one would think, especially because there are so many of them. Even if you qualify based on the outlined requirements a bank may find a reason to reject you. Despite all the rules and regulations put in place to make sure fair lending standards are upheld, depending on the type of business you operate, a bank can reject you for the simple nature of your business. That is not to say that every bank will reject you for their business loan product. But you have to ask yourself, how much rejection can you take?

So what are the requirements for a bank business loan?

Superb Business and Personal Credit History

• A bank wants to see that their borrowers have taken care of their lending opportunities and debt responsibilities in the past. If an owner has misused their personal credit it can reflect poorly on the business as a whole. Not to mention, if a business has not started a business credit history this can be a red flag for a bank because they have less to go off of.

Business History

• Unlike a personal loan where your credit history is one of the most important factors, your business’ history is important when it comes to a bank business loan. A bank will look for how long your business has been operational. Typically, they are looking for at least two years. They want to know that you have been able to deliver profits after all of your operational expenses. This helps them know if you have the funding to fulfill your debt responsibilities to them.
• Banks are not looking at risky businesses for lending opportunities because of the risk level associated with them. When it comes to a bank business loan in the modern world of lending, the interest rates are low. Although this is a great thing for borrowers, this means that banks do not have a wide margin when it comes to their profits. In times like these, especially with business loans, banks are really only looking for safe opportunities.

Business Plan

• Most banks are looking to understand how you plan to grow your venture over the next three to five years. A proper business plan will take a lot of time to put together, time that not all business owners have. A financial institution will look to understand why you need the funds and how you plan to use them. This should not only be outlined in your plan but you need to be prepared to talk about them in the meeting.

Now that you have gained an understanding of what the requirements are for a bank, you may be thinking, you don’t qualify. Don’t worry, you are not alone. There are a lot of businesses that can’t qualify for a bank business loan. But that does not mean there are no other opportunities out there for you and your business.

One of those options is a merchant cash advance and it is designed for businesses just like yours! It can be a great option that has simple requirements that most new businesses can qualify for. Even if you have poor personal or business credit, you can qualify at eBusiness. Even the amount is comparable to a bank business loan. At eBusiness, we can get you anywhere between $5,000 and $500,000 in cash fast!

Unlike a bank loan, we are not going to ask you how you plan to use the funding because we don’t claim to be experts in your business field. We are experts in getting the right business the funding they need! You are the expert in knowing how to grow your company!

Ready To Get Started with Us?

Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now.