Finding Funding Options for Small Businesses

Obtaining business funding as a small business owner can be a daunting process. There are many outlets for funding, but it can be difficult to determine which ones your business qualifies for. The application processes that banks and the Small Business Administration require can be lengthy and complex, so just deciding to apply means signing up for a significant time commitment–and there’s no guarantee that the result will be positive. Figuring out what’s available is the first step towards growing the business, but it’s not as easy as some financial institutions make it out to be.

Many merchants start out by looking at Small Business Administration loans, but there are several types of SBA loans. Does your business qualify for an SBA real estate loan? A microloan? An equipment loan? Each program has its own set of requirements and its own application process, and it might take weeks to determine if you’re even eligible for a given program. The SBA does link to an Access Financing Wizard that claims to identify what programs are right for you, but that site only adds to the confusion; I put Loanability’s info in and it came up with 57 different programs that it thought would be helpful. Among the suggestions were a loan program for rural utility companies and a program aimed at companies that do environmental work at former industrial locations. Those aren’t quite what a company that finances small businesses is looking for.

Banks can be a little more straightforward, but the issue there is that it’s simply not that easy to get a bank to finance a small business, especially one that might have seen some recent financial hardship. Unexpected circumstances can cause problems for any business, but banks aren’t especially interested in funding businesses that they deem risky, even if those businesses have a history of performing well. Banks can decline a business simply because they deem the business type to be problematic, or because they’ve seen bad results with other businesses in the same geographical area, or any number of other reasons. Part of the reason there are so many SBA programs is that there are so many businesses looking for alternatives to bank financing.

Small business funding options shouldn’t be this difficult to obtain, nor should they be so complex that business owners can’t easily figure out what’s available to them. That’s one area where Loanability shines–we keep application requirements to a minimum, and we put specific terms on the table as quickly as possible so our merchants know exactly what they qualify for.

With a plethora of funding options for small businesses out there, it can be difficult to find the one that works best for you. Many companies will offer attractive hypothetical numbers that mysteriously disappear when you ask to see them in writing. At Loanability, our policy is simple: we give you our best offer up front, in writing, with no gimmicks or fees. At the end of the day, our goal is to make business financing simple and quick. Our philosophy is that there should be an easy path to financing every business, and we do our best to give every applicant an offer that they’ll be happy with.