Does this sound familiar? You need a loan to save your business. However, you can’t get a loan because your business is struggling.
Trust us when we say you’re not the only one stuck in this cycle. Over 80% of small businesses have to close their doors forever because of cash flow shortfalls. But sadly, the big banks deny roughly 75% of small business loan applicants.
However, if a major bank says “No,” that doesn’t mean there is no hope. Here are some of your options to get access to cash or funding.
A Merchant Cash Advance
Here’s the good news: This is not a loan. It’s not subject to the same type of regulations that typical lenders and big banks are bound by. This is why you should check out Payvant Capital to explore your options if you’ve been denied a small business loan.
A merchant cash advance (MCA) can give you an influx of funding in exchange for a certain percentage of your future transactions. These are extremely popular among small business owners for three main reasons.
The first reason is the high approval rates. You can qualify if you have been in business for 6 months and have monthly transactions over $10,000.
The second reason is that the MCA’s turnaround time is incredibly fast. You can submit your application and get approved within 24 hours, which makes it ideal for emergency situations.
And the third reason is the reasonable payback terms. Your payments are linked to your income, so if your sales are slow for a month, you will be making smaller payments. This is better than having to worry about making the same static (and often large) loan payment every month.
A Business Line of Credit
A line of credit through a bank can be just as difficult to get as a loan. However, you might be able to get a business line of credit through a smaller bank.
This could be attractive because your payments and fees are based on how much of your line of credit you actually use. If you have a line of credit up to $10,000, you’re under no obligation to use it all.
The downside is that you’re often not free to spend your money however you see fit. You may have to submit paperwork to the lender explaining why you need access to your line of credit, every single time you need money.
A Business Credit Card
This is another form of revolving credit, and your odds of approval are higher than the bank. You can also get perks like cashback and reward miles when you use it.
However, the credit limits are often relatively low. So, if you need a major influx of cash or a means of funding something major, this may only get you part of the way there.
You can break the cycle! All 3 of these options are perfectly viable and help business owners like you every single day. Just because the banks aren’t an option doesn’t mean you’re out of options.
Don’t give up! Find the best option to help your business and your future!