Commercial capital is a term that is not too common for small business owners, but it’s important to know about the world of commercial lending. The economy has changed and there are more opportunities for entrepreneurs than ever before. Here are 5 reasons how small businesses will benefit from commercial lending.
Lower Interest Rates
Interest rates for commercial lending are much lower than those for personal loans. The reason for this is that banks and other lenders do not want the risk of not being able to recover their money if a business goes bankrupt so soon after they have lent them money. These lower interest rates make it more affordable for businesses to borrow money because they won't have as much debt to pay back in the future. They can also be variable, meaning that it is unknown what the interest rate will be at the time of borrowing.
Ease of Access
Small businesses are often looking for financing to grow their business. But for small business owners with less than perfect credit, the process of applying for a loan can be cumbersome and unapproachable. Commercial capital is changing that by providing ease of access to funds. They offer loans that could be backed without collateral in most cases or with a real estate property in some instances.
You can feel confident in your loan application because their approval decisions are based on more than just credit scores. They take into account all aspects of your business including how it is doing financially, its cash flow, and its assets.
Fast Approval Process
The fast approval process for business loans is what every entrepreneur desire to avail. The goal of commercial lending is to help businesses grow by providing them with the necessary funds for their growth. The loan application can be filed online and then within minutes up to 48 hours they will receive an approval or denial notice from the broker or directly from the lender.
No Collateral or Guarantee Required
A company that is not required collateral or guarantee for commercial lending would be more likely to pay back their loans. Commercial lenders do this so small businesses can focus on running the company with ease. The business will not have to worry about the equity of their home being at stake if they get a loan from a bank. They will get financial flexibility, and the loan given will also be flexible depending on what is needed.
Quick Funding Periods
The commercial lending industry is always looking for ways to increase its profits and acquire new clients. One of the most popular methods is to offer a faster funding period for small business loans. This allows business owners an option that does not require a large down payment and can be paid back in installments over time. This will allow you to get your loan approved in minutes to a few days instead of waiting months like you would with other lenders.
The future of commercial capital is looking bright! With the advancement of technology, there are many different ways that merchants can now go about acquiring funds to fuel their business with. Merchants can now easily take out a loan for working capital or to buy equipment.
Talk with one of our experts today and find out what financing options work best for you and your company!