Choosing an alternative business loan provider can be difficult for small business owners. The pressure of securing the best loan can seem overwhelming on top of the everyday challenges of running a business. In order to secure the best loan, business owners should ask prospective loan providers three critical questions.
1. WHAT ARE THE COSTS?
Alternative business loan providers offer a range of loans at varying rates, sometimes 35% or more. Ask about costs and rates upfront and look for a provider with reasonable rates. Many alternative business loan providers offer loans without collateral and more favorable repayment terms which make it a cost-effective option for business owners.
2. HOW QUICK CAN I GET A LOAN?
For emergencies and unplanned expenses, loans are needed in a few hours or days. Be sure to check the time frame for loans and use an alternative loan provider that can expedite applications and provide funds with the quickest turnaround.
3. HOW MUCH MONEY IS AVAILABLE?
Banks and loan companies often lower the loan amount for applicants with imperfect credit or lack of collateral. When applying for a loan ask about the maximum amount available; alternative loan providers such as Timestar Lenders offer funds from $5,000 to $500,000 for small businesses and merchants.