The truth is… that if a Small Business Owner needs money to grow their business, the best source for funding is a local bank or a credit union.
Local banks and credit unions can offer:
- attractive interest rates
- flexible loan terms
- perks and incentives
The challenge with banks and credit unions, understandably, is that they must comply with strict policies and government regulations, which lends to arduous document requirements and a ‘slow-walk’ to approval when it comes to small businesses funding.
Now, of course, if you have excellent business credit, excellent cash flow, and possibly some collateral, among a few other qualifications, then you should absolutely consider approaching your local bank and/or credit union for the working capital that your small business needs.
Unfortunately, many Small Business Owners, since the pandemic, and other contributing factors that continue to this day, have faced several heavy challenges.
These challenges may have caused a disruption in cash flow, which in turn, may have caused for your business to take a hit to its Dunn & Bradstreet score, (if your business has one), and certainly may have affected your own personal credit score.
These challenges, among several others, do cause for many Small Business Owners to ‘look-bad-on-paper’ which results in getting a DENIAL from a bank or a credit union almost every time.
Fortunately there are alternative funding sources available to the Small Business Owner that do not put so much weight on the credit score but rather on the health of your business.
Every small business is uniquely different and there are many funding options available which may consider other aspects of your particular business during the business funding process.
If you have been denied a business loan through a bank or a credit union, but you are still in need of funding for your business to launch your great idea, revenue based funding may be an option for you to consider.