Unlike most loans, a business loan can require a long approval process. There are multiple reasons why a business loan takes longer than most other types of loans. But mainly, it boils down to how long it takes you to create a business plan. As well as how long it takes your potential lender to review that plan.
Due to these factors and others, a business loan can take anywhere from 60 to 90 days before it can be approved. We know that’s a long time to wait to get the money you need. That’s why we’ve come up with some ways to speed up the business loan process.
The Inquiry Process for a Business Loan
Applying for a business loan from a bank requires that you go through a lengthy approval process. You will be asked to come up with a business plan that outlines exactly what your company does, how much money your company is looking to get with a loan, and how your company plans to earn enough revenue to repay the loan.
Though there may be other questions that you need to answer, like:
- What do you need the money for?
- How long has your company been in business?
- What is your credit?
- Does your company have any outstanding loans?
- How financially secure is your company?
- What/How much collateral, if any, do you have to put up?
The exact time it takes to evaluate a loan varies from case to case.
If you find this article helpful, why not try reading some other informational articles we’ve written. We post articles regularly, covering a wide range of financial topics. If you’re looking to refinance, consolidate, or simply want to know more about other types of loans, then Max Cash has the answers you seek.
Alternative Ways to Get a Business Loan Faster
Traditionally, when companies get a business loan they use banks as a means of securing funds. The downside to using a bank is that getting funds can take upwards of 90 days. But there are other methods that are available if a company needs to get funds in a shorter amount of time.
These methods include:
- Getting an SBA Loan: If you don’t have the time to wait for a bank’s approval process, then you can always try getting a loan from the SBA (Small Business Association). By taking this route, you can get approved within a matter of minutes and get funded in as little as a week. However, the downside to using an SBA loan is that they typically require more paperwork and charge more in fees than a bank will.
- Using Peer-to-Peer Lending: By using a peer-to-peer lender, you can have the application and approval process completed in about 4 to 5 days. Though the cost of having the process done so quickly can mean high interest rates.
- Getting a Personal Loan: If you need a low valued loan and you have good credit, then taking out a personal loan can be one way to get capital fast.
- Use Credit Cards: While this is an option, it can get you into trouble pretty fast. Many companies have used personal credit cards early on in a business’s life to get by. But the problem comes when people realize that even if a company fails, the owner is still stuck paying off those credit cards.
The Benefits of Using Max Cash
Whether you’re looking for a business loan, home loan, or student loan, Max Cash has the expertise to help you handle any financial situation. But don’t think that’s all we do. As we can also help connect you to a lending company, acquire terms that fit your financial needs, and answer any questions you may have.
And the icing on the cake? Our services are provided free of charge. That’s right, we give our clients 100% free service. We are able to do this because we have a vast network of lending companies whom we are partnered with.
But don’t worry, because although we are paid by the lending companies, we only match you with ones that are compatible and flexible for your needs. Know that we work with only the best because we vet every lender in our network.
If you would to try out our free services for yourself, then please give us a call at (833) 207-9052 or send an email to firstname.lastname@example.org.