For many businesses, obtaining a loan is paramount to not only starting the business, but being able to see it grow and strengthen over the years. While in recent years it has been sometimes difficult for many businesses to obtain loans due to a struggling national economy, there have been several recent trends that seem to indicate it is becoming much easier to get the money needed to see a dream become reality.
SBA Loans
Many businesses today would not exist had it not been for their ability to obtain an SBA Loan through their lender. Small Business Administration loans, while having many qualifications included such as size requirements and finance and lender qualifications, are still considered the best loans available for those wanting to be their own boss. Fortunately, it’s far easier to obtain an SBA Loan today because the Small Business Administration has recently stated it will guarantee a certain percentage of these loans, which makes lenders more willing to say yes when future entrepreneurs apply. Some of the SBA Loan programs being guaranteed include the SBA Express program and the Micro Loan program.
Non-Traditional Lenders
While many people still look to traditional lenders for their money, others are turning to newer and more innovative methods. According to most experts, this is currently the most popular trend for those seeking loans. The major reason given for this swing is the seemingly never-ending number of qualifications needed to be eligible for an SBA Loan. Alternative lenders offer the chance to get the loan approved in a much shorter period of time than those offered at traditional banks and credit unions, making lenders such as Business Credit and Capital a great option. With loans from these lenders approved in as little as 24 hours, they are a smart choice.
Lower Interest Rates
A very promising trend in business loans is the lowering of interest rates. Due in part to the emergence of non-traditional lenders that led to increased competition between them and traditional lenders, this trend has resulted in such big-name lenders as Wells Fargo committing to loan more than $100 billion to U.S. small businesses by 2018.
It’s All About the Cash Flow
Always a major part of getting any business loan in the past, one’s cash flow can make or break their chance of getting the money they need. Traditional banks constantly examine cash flows of those to whom they’ve lent money to see if there are new financing options available. A current trend in this area is banks looking at middle market accounts to see if there are additional ways they can lend money to more clients.
With the multitude of trends from both traditional and non-traditional lenders, those seeking loans for businesses have plenty from which to choose. By examining one’s options, it’s very possible to get the money that’s needed while still doing so on one’s own terms.