Most business owners know that they can apply for financing through the Small Business Administration (SBA). Fewer business owners know that there are alternative financing options which may be available to them.
Let’s take a look…
The SBA has an affiliation with the government and a long history of guaranteeing loans. This alone leads many business owners to utilize their service.
However, as with any business decision, it is important to understand who you are doing business with.
The SBA’s role is to guarantee a loan that is underwritten by a bank.
The SBA needs to funnel loan applications to the bank and the bank needs to approve loans for the SBA. This means that the customers interest are not always put first in their pursuit to do business.
In fact, a recent Coleman Report shows that 1 in 10 recipients of an SBA loan defaults.
Because business was done between the SBA and the bank even though the terms of the loan were not in the customer’s best interest. The bank now owns the customer’s business, home, car, etc.
So why are business owners attracted to SBA loans? The answer may be that it has been instilled as the acceptable practice.
That and the low interest rate.
Don’t be fooled by a low rate though, once the numerous fees are added in, the cost of the loan is substantially higher.
Also, the approval process for an SBA loan typically takes upwards of 6 months–during which time the business can be missing out on revenue opportunities.
Unsecured financing is a newer option. The first benefit can be seen right in the name….
If you are in need of financing for your business, call (877) 482-3008 to consult with a Business Financing Advisor, or fill out our simple 1-minute application online here to get the funding you need in as little as 24 hours.
Learn more about unsecured financing and unsecured small business loans and how it can benefit you!
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.