One of the most frequent — and also among the most important — questions that we receive here at National Business Capital, is what distinguishes our qualifications for a business loan vs. a bank’s qualifications. Below is a high-level factor-by-factor overview of the key differences:
At National Business Capital, our clients do not need excellent personal and business credit scores. Impaired or bad credit is typically acceptable, including scores below 500. Banks require borrowers to have excellent personal credit and business credit scores.
At National Business Capital, our clients need to have at least three months of business history. Banks typically require business loan applicants to have at least two years of business history (and sometimes longer).
At National Business Capital, we don’t impose restrictions or covenants on how our clients can use their loan. Banks typically mandate that loans must be used for a specific purpose (e.g. purchase inventory, expand into new marketplaces, etc.)
At National Business Capital, we do not require collateral for our loans (i.e. our loans are unsecured). This means that our clients’ assets are safe from immediate repossession in the event of missed payments or default. All bank loans are secured by personal and/or business assets, which will be repossessed in the event of missed payments or default.
At National Business Capital, we typically assess applications and render approvals within 24 hours. Banks can take several months to approve an application. Some SBA loans (which are facilitated by banks) can take over six months to push through the application process.
At National Business Capital, our approval rate is about 90%. Approval rates for banks business loans are around 20% (big banks) and 40% (small banks).
Applying for a business loan with National Business Capital is fast and simple, and takes about two minutes via our secure online application form.
Applying for business loan from a bank is a time consuming and complex process, and includes submitting a business plan, financial statements, personal and business credit scores, tax returns, resumes, legal documents, AR and AP invoices, and so on.
To learn more about partnering with National Business Capital to quickly get the financing you need to drive your business onward and upward, contact our team today or fill out our 1-minute application.
For more information on how to get business funding when banks say no, download our FREE eBook today:
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.