When you’re looking to expand an existing enterprise, you may need financing either to get your idea off the ground or to grow to meet increasing demand. If so, you’re far from alone – business loans and capital advances have helped many entrepreneurs achieve their dreams.
If you’ve been paying attention to the financial news lately, though, business loans are not always easy to acquire. In the wake of the financial crisis of 2008, banks tightened up their regulations on lending, and small business owners have had a hard time working with traditional lenders to get the financing they need. This has opened up and increased avenues for Alternative Lending.
In response to this need for credit, other options have emerged to provide funds on a private basis. Working with these Alternative lenders can involve a faster process than working with the banks, as brokers, cash advance officers, and private lenders are more focused on turning around your application.
Securing a Business Loan or Merchant Capital Advance
Let’s take a look at the steps you need to follow in order to get your loan funded.
1. Complete the application and return it with the requested supporting materials.
The sooner you turn in this paperwork, the sooner you will receive a lending decision and your funds. Some typical documents include your business’ bank statements as well as records for credit and/or debit card receipts. Some lenders will want to see your business plan, particularly if the loan is to fund a new business. Some lenders may want to see your personal credit score if this is a newer business
2. Answer any questions based on your submissions.
The underwriter may have some questions after seeing the application and the attached documents. If so, be available to take those questions, either over the phone or via email, and send in any additional requested documentation as soon as possible. If there are no questions, you’ll generally get an answer within 1-2 business days.
3. Review your offers.
Take a look at the offer(s) that come in for your capital advance. Take a careful look at the terms and conditions, so that you sign the deal that works best for you.
4. Sign and return the final documentation.
Once your signature is on these documents, that clears the way for you to receive your money.
5. Wait for the funds to be deposited into your account.
This whole process can take place within a matter of a few business days, depending on how quickly you provide the requested information and respond to queries.