Another question that the experts here at Mulligan Funding get on regular basis is “what’s the best way to get a small business loan?” This is a very important question, and while the answer isn’t complicated, it takes a bit of explaining.
The best way to begin answering this question is to identify your options – and if you’re like millions of small business owners across the country, contacting your bank isn’t going to be one of them. Here’s why:
If you have dinged or bad credit, less than two years of credit history, and don’t have collateral – or don’t want to offer it up as security – then there’s virtually no chance that your bank will approve your small business loan application. It doesn’t matter how long or loyal a client you’ve been, or whether your small business is booming.
“Excuse Me, Do You Have the Time?”
The other factor to consider is that one commodity that in many ways is more valuable than anything else: TIME!
The banks’ small business loan application process is excessively long. The minimum time you should expect to hear back (and there’s no guarantee of approval) is a month, though several months is not unheard of. In fact, some small business loans administered by banks in partnership with the Small Business Administration (SBA) can take over 6 months to be approved, and be vetted through over 30 loan officers and administrators!
As such, even if you happen to meet the bank’s stringent and, frankly, arbitrary and at times rather bizarre requirements (do they really need to see updated resumes of everyone in your company!?), you may not find that applying for a small business loan from your bank makes sense – since by the time your application is evaluated and (hopefully) approved, the opportunity you wanted to take advantage of will probably be gone, or the expense you wanted to cover has grown bigger.
If Banks are Your BEST Option…
So with the above in mind, we can get down to answering the question “what’s the best way to get a small business loan?” Here’s our answer:
If you have plenty of collateral at your disposal (e.g. properties, vehicles, equipment, etc.), have perfect credit and years of P/L statements with many more Ps than Ls, and can withstand an excessively long application process, then you’ll probably find that applying for a small business loan from your bank is the best move – because you may be able to leverage all of your advantages into a lower rate or more advantageous repayment terms.
Just keep in mind that banks aren’t particularly interested in small businesses these days – they like large and enterprise organizations – so don’t overplay your hand when it comes to negotiating. Banks don’t mind leaving the table, and threatening to take your business elsewhere will likely trigger an infuriating shrug and a “best of luck to you”.
However, if you don’t want to go through the red tape and simply want a fast, transparent small business loan that (upon our approval and your acceptance) puts cash in your account in a matter of days, then the answer you’re looking for is Mulligan Funding.
Give our experts a call today, and we’ll be happy to provide you with objective, no-nonsense information that empowers you to make a decision that’s best for your small business!
If you're looking for more information on what makes a bank loan different from a working capital loan, download our informative eBook "Working Capital Loans vs Conventional Bank Loans"