Established in 2001, ARF Financial LLC is headquartered in San Mateo, California. ARF Financial provides short-term, unsecured business loans and lines of credit for merchants and retailers in all 50 states. ARF has more than 80 employees, 30 of which originate loans throughout the country. Consumers that choose ARF should remember that they must have a credit score of 550 or higher.
If your business needs more than $50k, check out Lending Club
Accion is a nonprofit micro-financing company that provides business loans and other services for small business owners who might otherwise have trouble getting traditional business loans. Accion International operates in 32 different countries located in North and South America, Africa, and Asia. It began in 1961 as a community development organization, building roads, schools, and community centers with volunteer labor in Venezuela and Brazil. Consumers that choose Accion should remember that they must have a credit score of 550 or higher.
Live Oak Bank opened its doors in 2008 and tries to provide business loans to small business owners in niche industries. They are one of the largest business loan processors in the United States, with a strong portfolio of small business lending products. Live Oak Bank is a preferred Small Business Association Lender. Consumers that choose Live Oak Bank should remember that they must have a credit score of 550 or higher.
American Business Credit is a nationwide business financing company founded in 2012 and located in St. Petersburg, Florida. The company specializes in unsecured small business loans and lines of credit up to $1 million. However, the finance services company does not disclose its fees to the general public. Funding within seven days, and available nationwide.
Typical borrowers through American Business Credit are small business owners with good to excellent credit and that have been in business for at least two years. These borrowers also are generating at least $150,000 or more in annual gross sales and need fast access to small amounts of working capital for a variety of business purposes. Typical borrowers come to American Business Credit because they cannot qualify for traditional funding at banking institutions. Consumers that choose American Business Credit should remember that they must have a credit score of 550 or higher.
Small business loans from American Business Credit are typically used for equipment, payroll, marketing, technology upgrades, and more.
MUFG Union Bank, N.A., (Union Bank) is a full-service bank with offices throughout the United States. Union Bank is a member of the Mitsubishi UFJ Financial Group, one of the largest financial groups in the world that had assets of approximately $2.4 trillion as of September 30, 2015. Consumers that choose Union Bank should remember that they must have a credit score of 550 or higher.
Chase is the U.S. consumer and commercial banking branch for JPMorgan Chase & Co, and has 5,300 branches and 15,500 ATMs throughout the United States. Offering online, smartphone, and on-the-go banking options, Chase has become a one-stop shop for financial services including debit and credit cards, personal banking, mortgages, auto financing, investment advice, small business loans, commercial banking, and payment processing. Chase goes to great lengths to keep personal information safe and secure by using technology to encrypt your information such as username, password, and account information. Consumers that choose Chase should remember that they must have a credit score of 550 or higher.
Alliant is a non-profit credit union founded in 1935 and headquartered in Chicago, Illinois. The lending institution offers small business loans as well as other funding options for its customers. According to its corporate profile, the credit union has approximately 300,000 members throughout the United States. Small business owners are able to acquire up to $20 million in financing, depending on loan type. Customer reviews online are evenly mixed both positively and negatively regarding the company's customer service experience and loan products. Consumers that choose Alliant should remember that they must have a credit score of 550 or higher.
LiftFund's began in San Antonio, Texas in 1994 in conjunction with the micro-lending organization Acción International that offers micro-loans in Latin America. LiftFund incorporates the same mission and ideas in the U.S that Accion uses in Latin America. LiftFund is a non-profit organization that helps small businesses who have a hard time accessing funding. Consumers that choose LiftFund should remember that they must have a credit score of 550 or higher.
Zions Bank was founded in 1873 in Salt Lake City, Utah. It is one of the oldest financial institutions in the intermountain west and specializes in banking and technology services. The company has 125 full-service financial centers across Utah, Idaho, and Wyoming, and is currently led by CEO and President, A. Scott Anderson. Customers can enjoy access to over 200 Zions Bank ATMs. Zions Bank is a part of Zions Bancorporation, which operates in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, and Washington State. Consumers that choose Zions Bank should remember that they must have a credit score of 550 or higher.
Fundable started in 2012, and is based out of Powell, Ohio. The company is an equity crowdfunding platform, and is directed toward entrepreneurs and investors looking to fund their startups. The company has helped over 377,000 startups raise $282 million in investor capital. Fundable has over 23,000 backers from an investor database, and aims to help clients find the right funding for their business. Main clients include technology companies, health and beauty companies, mobile companies, and more. The company allows startups to generate a large amount of funding, quickly, from a network of backers. Fundable offers reward-based funding, and equity-based funding. It is free to get started, but the company does charge a monthly fee to fundraise. Consumers that choose Fundable should remember that they must have a credit score of 550 or higher.
Do you dream of becoming your own boss? Or perhaps you’re already your own boss and want to expand your company. Those daring enough to take the plunge and apply for a business loan will find it can sometimes be a complicated process. To find a loan that fits your company, consider all the factors you’ll encounter when applying. Here are a few helpful things for you to know when looking for a business loan company:
Finding the right loan for your business is a daunting task. There are a plethora of business loans, each with unique aspects and requirements. Keep in mind all the factors that could affect your loan such as personal and business credit history, sufficient collateral, profitability, and cash flow. However, don’t let this discourage you. Don’t be afraid to ask questions and look around until you find the right lender and loan. Make sure to ask your lender what loans they offer and which one will help your business.The most important thing is to find a loan that will best benefit you and your company’s needs.
Lenders will want to know everything about your business. Take the time to tell them about your business, clients, and industry. You can also share how you plan to spend the loan money and where you want to be in the next 5-10 years. Additionally, be sure to bring any documents that can speak to the credibility of your business, including business and personal credit histories, business plans, proof of collateral, bank statements, tax returns, and any other legal paperwork.
You filled out your business loan application a few months ago and are waiting to hear back about the decision. However, the lender calls to inform you that your business loan was rejected. This news would bring anyone down and feel discouraged. In fact, this is the case for many people attempting to get a business loan. Some people never even figure out why their application was rejected. Before hanging up the phone ask what it was that influenced their decision. Sometimes it can be that your business involves to much risk or there wasn’t a clear business plan. Most of the time it is something that can be changed and fixed. Before you submit another application make sure to revisit all aspects of your business proposal to make sure they meet the requirements.
Traditional bank loans are probably the most common when starting to apply for loans. However, just because they are the most common doesn’t mean that it is the best fit for you and your company. Finding the right business loan company takes time and patience, so be prepared to shop around. Focus on companies that are best suited to your current needs.
Be aware of the following items that a lender will look for in your business loan application:
Personal credit score: Your personal credit score plays a key role in whether a lender decides to grant you a business loan. Lenders want to try to guarantee that you’ll make your monthly payments and pay back the entire loan. A personal credit score allows lenders to make a judgement call about whether they’ll approve the loan. Generally, most lenders prefer a credit score of 700+, but there are exceptions.
Amount of time in the business industry: Lenders will consider how long your company has been operating. Most lenders require that your company be in business for 1-2 years before they’ll consider you for a loan.
Collateral: Before giving you the loan, lenders will want to know that if something goes wrong they’ll have something tangible to sell. Collateral can be a car, real estate, work equipment, cash, accounts receivable, or other assets. Lenders tend to undervalue collateral as it lessens the risk they have to take. Undervaluing the collateral requires a borrower to provide more assets to secure the loan.
Depending on the company and industry you’re in, there are various options for business loans. Each loan lender will specialize in different kinds of loans, and not all of them will be right for your company. Some loans are customized for startup companies, seasonal companies, companies that need equipment, companies that want to increase their working capital and more.
While loans can be risky, they can also benefit your company. You can get a business loan for a variety of reasons:
Many business owners choose to take out smaller, short-term loans. Consistently making on-time payments will build your business’s credit score and credibility, making it more likely for you to qualify for larger loans in the future.
This can depend on a number of factors, but don’t expect to walk out of your lender's office with a handful of money on day one. Assuming all documents are correct and present, it can still take weeks or months for your business loan to be accepted. Research each lender’s application and approval process before taking out the loan, just in case it takes longer than you thought.
A business credit score is based on various factors, including your payment history, bankruptcies, liens, etc. A bad credit score shows that you have failed to make your scheduled payments, otherwise known as payment defaults. Whereas, a thin credit score means you don’t have a sufficient amount of business credit history, making it hard for lenders to determine creditworthiness. In both cases, it can negatively affect whether you get the loan.
Fixing your credit score will take some time, but there are several steps you can take. Be aware that it could be a while before you see any drastic results.
First, pay all your bills on time or, even better, pay them early. A late payment will lower your score, and it only gets worse the longer you leave it. Second, be on good terms with your vendors. Your suppliers can make a big difference in your credit score. Some vendors will report your on-time payments or early payments to credit bureaus, which will raise your credit score. Another tactic to fix your credit score is to open more than one credit line. Or, you may want to try getting a secured credit card. A secured credit card allows you to set up a security deposit that acts as collateral. If you put down a $500 security deposit, your card limit is $500. Making regular, consistent payments to this card will positively affect your credit report. Last, keep your personal finances and business finances separate. A simple way to do this is to open two separate accounts, one for business and one for personal.
First, identify what your company needs. If your company is looking to expand, don’t apply to a loan company that focuses on equipment financing. The best thing you can do for yourself and your company is to take the time to find the right lender. Reading reviews, calling and asking questions, and reaching out to those who started their own businesses will help you find the best fit. Each business loan company will have different requirements and qualifications so taking the time to conduct your own research is key to finding the right business loan company.