There are few companies that have the luxury of a seemingly bottomless bank account. A vast majority of business owners run into cash shortages every now and again. In fact, a recent study revealed a shocking 82 percent of new businesses were forced to close their doors prematurely due to poor cash flow.
As a business owner, you don’t exactly have to throw in the towel the moment that cash gaps materialize. There are a number of financial vehicles you can use to get your company’s money situation back in good standing, which enables you to take advantage of new opportunities, hire additional staff members, and invest in new technology and equipment, among other things.
One of the easiest ways to solve your cash-flow problems is to apply for an unsecured business loan through a non-bank lender. These loans—which don’t require borrowers to put up any collateral—are relatively easy to obtain so long as your business is posting $100,000 in annual revenue. You can still be approved even if you have a suboptimal credit score or if your business is just starting out.
Unlike more traditional loans that require you to endure a time-consuming application process that might last as long as a month or two, you can apply for an unsecured business loan in 15 minutes or less. If approved, money can be available in your bank account within 24 hours—which means you’ll be able to start making moves right away.
There’s no sense in spending a ton of time tracking down the various documents that you’d need to apply for a loan through a traditional banking institution when you don’t have to—particularly because banks are still quite hesitant to lend money to businesses in the wake of the recent financial collapse. The good news is that when you apply for an unsecured business loan from an alternative lender, you won’t have to ransack your office and home to find the information you need to be funded. The information you’ll need to submit should be readily available.
Generally speaking, non-bank lenders will ask you to provide the following:
Business contact information. This won’t surprise you: To obtain an unsecured business loan, you’ll have to fork over your business’s name and its address. You’ll also have to indicate whether you rent or own your office and what industry you’re in.
General business information. You’ll have to share some other relevant information, like your business’s federal tax ID number, what kind of company you are (e.g., LLC, partnership, corporation, or sole proprietorship), and the date you incorporated.
Ownership information. Non-bank lenders will also require you to submit some personal information relating to your business’s ownership structure. You’ll have to tell them which people own the business and what percentage of it each individual owns. You’ll also have to share some personally identifiable information, like your birthday and your Social Security number.
Annual revenue estimates. If your business has been open for some time and you’ve demonstrated the ability to generate steady revenue, you should have no problem obtaining an unsecured business loan. New businesses can also obtain unsecured business loans, but they may have to pay higher interest rates.
Bank statements. Non-bank lenders can start underwriting when you submit three months of bank statements—assuming they look good. If they aren’t particularly strong, you may have to submit relevant tax documentation as well.
Once you realize that you need outside financial help to grow your business, you can’t afford to wait. Instead, you need to secure cash quickly.
When you apply for an unsecured business loan through a non-bank lender, you won’t have to spend a ton of time searching for relevant documents and filling out massive amounts of paperwork. The end result: You’ll know by the end of the day if money is headed your way—literally—and you can start growing your business accordingly.