#no credit check loan
Business Loans with No Credit Check
Business Loans with No Credit Check
When it comes to getting a business loan most business owners today are apprehensive about having their credit checked. It may sound surprising but one of the main reasons for their apprehension is that they do not know what their credit actually looks like nor do they know what the requirements are to receive a business loan. With a recent rise in lenders that offer bad credit business loans many small business owners no longer have to experience all of the nervous emotions involved with awaiting a response to a business loan application.
Times have changed in almost every aspect of life over the last decade, especially in regards to the business financing process. Applying for a business loan used to involve hundreds of documents. When a business owner submitted a business loan application he or she would have to include tax returns, at least a year or more of bank statements, several credit reports were pulled by the lender simultaneously, and then there were tons of miscellaneous documents that were particular to each situation. This process was not only frustrating and time consuming, sometimes lasting for months, but it often ended in rejection. This very common experience has fueled long standing beliefs and expectations as well as the apprehension that people feel before they apply for a business loan today.
This article is meant to dispel the fears that business owners feel when applying for a business loan. Today the distribution of business loans has shifted dramatically from banks being the only provider to private lenders becoming a dominant lender of small to medium sized businesses. The economic crisis left banks unwilling to lend over the last few years and the demand acted as the impetus for the surge of private lenders. The new lenders have a very flexible lending process and approvals happen more often than not.
The reason business loans are so much easier to receive today is that private lenders have created a lending model that relies mostly on the financial strength of a business’ cash flow. That means that even if a business is losing money consistently, it can qualify for a significant business loan based on monthly revenues. This model has also opened up the possibility of receiving a business loan with bad credit. The lending criteria considers monthly revenue as a primary approval factor and credit history less important.
Since monthly revenues are at the core of every approved business loan application the documentation required is considerably less than traditional funding options. For instance, most private lenders do not require tax returns, lien satisfactions, and many of the miscellaneous documents that used to be paramount. Now lenders simply need to provide proof of past monthly revenues and that the business continues to generate that revenue.
The flexibility of the new lending process cannot be under emphasized. Bad credit business loans are given today with an extraordinarily high approval rate. Business owners no longer have to feel lucky that they are approved for a business loan. In fact, many business owners today looking for funding go to multiple lenders attempting to find the best rate. Although going to more than one lender can be a negative if others believe the deal was funded, but it underscores the most important point; applicants with bad credit are getting approved for business loans with more than one lender.
A business owner does not have to worry about getting approved for a business loan. Most businesses are eligible for funding today in the private sector. Many private lenders can be found online and they have a very fast and flexible application process. The business financing industry has changed significantly and business owners have benefited for those changes by having much easier access to business loans.