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The 4 Fastest Ways To Get Small Business Loans

One of the most frequent questions we get at Market Street Funders is, “What’s the fastest way to get a loan for my small business?”

This is a tricky question because every business is different, and the things lenders look for can differ depending on your situation. However, there are things that all businesses can do to ensure they can get expedited funding the moment they need it.

We can actually get the answer by analyzing what an ideal loan customer would look like for a traditional bank:

1.     Your business doesn’t need a loan
Yes, such is life; if you don’t need a loan, that actually puts you in a great position to get a loan. This is simply because not needing a loan indicates that you’re already growing at a healthy rate with the capital you have, increasing the likelihood and rate that you’d pay back a hypothetical bank loan.

2.     You have a lot of cash on hand at a bank
With an existing account at a bank with a surplus of cash, of course that makes you an attractive customer for that bank. Any loan they offer will be quickly and easily paid back.

3.     Your business has pristine credit
If your business has great credit, and you, the business owner, also have great credit, then you are in a great position for a small business loan. Credit is one of the key criteria that banks look at to determine if you are a smart investment for them.

 

What Type Of Funding Is Right For You?

These are three classic loan factors, but in order to figure out how to speed the process of funding, we need to further break down how successful businesses approach working capital.

Some of the things that successful business owners do naturally - organization, planning, research - also make for great small business loan candidates, whether through a bank or through alternative lenders, like those that Market Street Funders can connect you with.

These are three classic loan factors, but in order to figure out how to speed the process of funding, we need to further break down how successful businesses approach working capital.

Some of the things that successful business owners do naturally - organization, planning, research - also make for great small business loan candidates, whether through a bank or through alternative lenders, like those that Market Street Funders can connect you with.

1.     Organize Your Ducks
Making sure you have all your ducks in a row is an easy, but crucial step that often gets overlooked. Having your business documents prepared and on-hand is something that any organized business owner can do. If your bank statements, business financials, and tax returns are at the ready, then you’re one step closer to a speedy funding offer.

2.     Build A Plan
It’s important to have a plan in place that outlines what you’ll be doing with the new working capital. Are you using it to bring a big marketing campaign to life? Is business picking up to the extent that you need capital to account for a big hiring spree? Are you outgrowing your physical space and making plans to expand, or move to a new store location?

These are all great reasons to look for working capital, but they are only the beginning. If any of these are the route that you’re headed, then you need to have a detailed plan on how you’ll execute once you get the attention of a lender.

3.     Great (But Realistic) Expectations
You also need an honest, realistic expectation about the amount of funding that your business is looking for. If you’re doing $100k in annual revenue, you can’t walk in looking for a $1 million line of credit

And being informed about not only a realistic amount, but also realistic terms, is crucial in your effort to get working capital. In the same scenario above, you can’t expect a loan with a 10-year amortization at a prime plus one. You need to work with a lender or a banker to understand what a reasonable rate is.

4.     Do Some Comparison Shopping
Dovetailing from #3, you need to do your homework before you start the process. Getting a business loan is no small endeavor and shouldn’t be taken lightly.

You do your research online and talk to people in-the-know before you buy a car - treat financing your business’s growth the same way. One easy way is to simply go down the block and pop into businesses where you have a relationship with the owner. Have a conversation about working capital, if they’ve taken any funding, and if they have any recommendations.

 

Many of these activities are actually areas where Market Street Funders can help you immediately. We work with you to figure out what you need, what your expectations should be for funding, provide you with industry benchmarks, and give you access to an entire marketplace of lenders ready to help you grow.

If you’re struggling to figure out where to start with the alternative funding process, reach out to one of our Funding Navigators today, and we’ll help you get started.