What do you do when you can’t get approved for a business loan from a bank? Check with other lending options. Yet, you’ll be surprised at how competitive their rates and deals can be when it comes to business loans. Plus, it’s easier to get approved for business loans from lending companies. Here are what we think are the five best bank alternatives for business loans that lending institutions offer. You may want to include them if you are interested in being issued a business loan.
Lending Club
This company offers term loans at a fixed rate. You can get a loan between $5,000 up to $300,000. Interest rates start between 9.77% and go up to 35.71%. The Lending Club also reports borrower’s credit information to the Business Credit Reporting Bureau, which means that they will help you build a good business credit rating. They can help build you to become a bankable borrower.
Funding Circle
Funding Circle’s term loan is designed almost the same as a traditional business bank loan. You can take out a business loan ranging from $25,000 to $500,000. You can select a term of one up to five years. You’ll have to make equal monthly payments to cover both the interest and the principal. If you do decide to use Funding Circle, you’re looking at interest rates between 4.99% up to 26.99%.
Fundation Business Loan
Online lender, Fundation offers business loans amounting to $20,000 to $500,000 with terms between one to four years. Interest rates are from 7.99% to 28.99%. They’re perfect even to those who need quick cash for business capital. They will process the loan in three days, which means you’ll get the funding faster compared to business loans processed by banks.
SmartBiz
SmartBiz is an online platform used exclusively for SBA 7 loans. They will help you find and get connected with a bank that can fund your SBA loan. You’ll get all the bank perks like low-interest rates, longer loan terms, low monthly payment – plus, you’ll get the funds from your loan a lot faster through this platform.
Credit Junction
Credit Junction provides a line-of-credit type of loan. You can be issued a credit line that ranges from $500,000 to $7.5 million. Their interest rates range from 14% to 19%. This form of loan would be the best option for those who need significant capital but isn’t qualified for a line-of-credit loan from banks.
Take the time to research the right bank loan alternative for your small business needs.