In case your company is a start up or considered a “niche” industry; an “outside the box” small business loan can help your small business with working capital, expansion, consolidating business debt or buying out an existing partnership. Let’s face it, lending for small businesses has never been so complicated or restricted. To get your small business loan approved you will need the following:
- Healthy Accounts Receivable
- Proof of Income
- Decent Credit of a 680 Credit Score or Higher
Start-ups have the most challenges of getting a small business loan. Because why? Because of the time they have been in business. In addition, niche industries are valued as credit risks, for example, construction companies and financial services. If you have been declined for a small business loan, I bet you heard these words before: “grow your business organically …wait until you have 24 months of established business and healthier receivables.”
What Does an “Outside the Box” Small Business Loan Mean Anyway?
It means there are lenders with available programs who are willing to finance niche industries, mediocre credit, and businesses with less than two years of established business. Before you make the call, lenders will not approve your small business loan if you have a foreclosure on your credit report within the past 12-24 months. If you have re-established your credit, you must provide good credit explanations for your credit derogatories. Personal credit and business credit is a crucial factor in today’s market with small business financing. As always, credit is king with everything, even with your business.
More and More
First Pro Capital is receiving more calls from potential clients whose lender is not renewing their existing business line of credit, and it’s not because of the client’s credit, it’s for some lenders who want to free up their cash by not renewing existing business lines of credit.
Related Posts:
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- Entrepreneurs Expanding their Business with a Business Line of Credit
- How to Grow a Business Organically
- Is Turning Your Accounts Receivable Into Cash Right for Your Business?
- When You Can’t Get a Business Loan at Your Local Bank
- Factoring Your Accounts Receivable for Capital
- Optimizing Your Business Growth with Asset Based Finance
- An Asset Based Loan Can Help Your Business
For more information on how we can improve your small business and credit in Bonita Springs, Fort Myers FL and Naples FL, please fill out the online contact form about your concerns or give us a call at 855.477.9007. Read what our valued clients have to say about First Pro Capital on our Testimonials page.
First Pro Capital and Credit Consulting Professionals know business and credit
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