Business lending involves lenders providing capital to businesses in exchange for repayment of the principal amount along with interest and fees. Typically, borrowers are required to make regular payments on a set schedule. The repayment terms and interest rates depend on the type of loan, the lender, and the borrower's fundability profile.
This capital can be used for various purposes like covering operational expenses, expanding the business, managing payroll, buying out competitors, or any other business need.
Traditional Lending
Traditional lending, also called conventional lending, is when chartered banks lend directly to businesses or individuals.
Fintech & Alternative Lending
Today, many businesses are turning to fintech or alternative lenders. These lenders use AI (artificial intelligence) to streamline document processing and quickly assess data for fast approval decisions. These fintech companies are typically backed by industrial banks and offer a more flexible and accessible approach to business financing.
How to Qualify for Small Business Loans
To qualify for small business loans, you need to understand what lenders are looking for. Essentially, lenders want to answer two key questions
1. Can you pay them back?
2. Will you pack them back?
How to Qualify for Small Business Loans
Lenders evaluate your ability to repay a loan by examining what assets or assurances you can provide. Generally, they consider the "Three Cs":
Collateral
Cash Flow
Credit
Collateral: Assets that can secure the loan, such as property or equipment.
Cash Flow: Evidence of consistent income to support loan payments.
Credit: Your personal and/or business creditworthiness.
What is FundingPower and Why It Matters
FundingPower™ is the key to determining if your business can secure financing. It encompasses how your business is structured, your financial documentation, and your overall credibility as perceived by lenders. The higher your Fundability™, the greater your chances of getting approved for a loan with favorable terms. Improving Fundability™ not only helps secure approval but also allows you to access more funds at better rates, giving your business the financial leverage it needs to grow effectively.
Which Loans Are Best for Small Businesses
The best loan for your small business depends on several factors, including your ability to prove repayment. Whether using business or personal credit, cash flow, collateral, or a mix of these, it will define what loans you qualify for.
For Businesses with Good Personal Credit (Owner or Guarantor)
The Credit Line Hybrid program is ideal for both startups and established entrepreneurs. It offers up to $150,000 in unsecured, no-doc financing without collateral. Funding approval depends primarily on personal credit quality, with introductory rates as low as 0% for 6-18 months. Business credit cards acquired also help in building business credit.
| Approval Amount | Credit Quality | Collateral | Financials |
|---|---|---|---|
| Up To $150,000 | Good | None Required | None Required |
Get up to $150,000 for Your Business!
Get up to $150k in unsecured, no-doc credit cards—even if banks have said no! Pre-qualify now to see what’s possible.
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