Do you wince when you read the post title, ” getting a small business loan without collateral” ? Maybe, but don’t, I have some very good news for you. Now, seriously before I get into leading you down the road to really discovering if you can, and what are business finance lenders really thinking, we ask again, can i really get a loan fast and not have to worry about collateral?
Well truth is getting a small business loan without collateral is very much possible. You see, things have and are constantly changing within our economy. Some say it’s Trump, and other say it’s trumped up, sorry , I couldn’t help the pun. In all seriousness, business enterprise is on the rise. Business owners want a small business loan now , and big banks just aren’t meeting the needs of smaller business owners, why not?
Here’s where, believe it or not, you don’t need math. I know, the one time you figure maybe you would use the few things you learned in algebra, the math is simply not needed. Essentially the reason small business owners struggle with the big banks are because there is greater likelihood that small businesses will default on a loan. No one likes to hear that their high risk, but the truth is Walmart has nothing to worry about, but your local bakery or automotive shop struggles and battles , trying to understand getting a small business loan without collateral possibilities.
Let’s look a little closer at the small business funding hardship. A local bakery seen it’s profits fluctuate between $5 and $7K monthly revenue, until the secret brownies were a hit at a local luncheon. Within weeks the bakery’s revenue went up by 1700%, yes that’s incredible. Not so much, because a good product can catch on as quick as a fall breeze run across your face, but if the money was low prior the boost, then there simply may not be money to expand. Soon the baker knew more equipment, more staff, and more supplies were needed to meet the abundance of contracts. On top of the lack of money the bakery owners’ credit score was 513, not good in any terms. Long story short a trip to the local banks were all “No”, and the bakery stood on the brink of losing out on a contract that could pay off all its delinquent debt.
This is where alternative financing steps in, rather than looking at personal credit score, alternative small business capital funding looks at the money coming into the business. Essentially getting a picture of revenue diminishes bad credit, and highlight likelihood of continued profits with no worries over getting a small business loan without collateral obstacles.
What the big banks won’t tell the small business owner is that there are investors who gladly take on funding small businesses like the bakery, in business over a year, generating $10,000 monthly, and even with a FICO in the low 500’s . That’s not the only good news there are other avenues and not-so-discussed alternatives to big bank turn-downs.
Know your options and avoid being left out business growth.