Published on : 13 January 20204 min reading time
If you’re in the market for a new loan but aren’t sure whether or not you’ll be able to get the best deal, you might want to consider comparing the offers of several different lenders to find the one that’s right for you and your needs.
Many people are hesitant when it comes to shopping around for a lender, often because they’re afraid that the bank or lender that they usually do business with will penalize them or be offended that they’re looking elsewhere for their loan unfortunately, this mentality can cause them to pass up some of the best loan offers that they might find otherwise.
Hopefully, some of the information contained below will help you to avoid this problem and assist you in finding the lender that’s right for you and your loan needs.
The first step in finding the right lender for your loan is realizing that there are a number of options available to you in your search. In addition to traditional lenders such as your local bank, you can apply for loans at finance companies, online lenders, and depending upon the loan type that you’re looking for possibly even specialized lenders such as mortgage companies.
Getting a Loan from a Non-Traditional Lender
Sometimes you might find that a traditional lender such as a bank simply can’t meet your loan needs. Perhaps the interest rate that the bank offers is simply more than what you’re wanting to pay, or you might not be able to reach the bank during normal business hours in order to submit your loan application. Regardless of the reason that traditional banks are unable to help you with your loan, you need to find an alternative lender that can process your loan and get you the money that you need.
Luckily, there are a large variety of non-traditional lenders that can not only get you the money that you need but can offer competitive if not better interest rates than your local banks.
Below you’ll find information on some of the alternative lenders available, as well as information of finding the one that’s right tog et you the loan that you need.
Successfully Obtaining a Small Business Loan
Working with a bank to obtain a small business loan can be an easy or difficult process, depending on how prepared you are to meet with the lender and discuss your business’ situation and needs.
One of the leading causes of business failure is insufficient start-up capital. Ironically, though, lenders rarely approve loan requests for the businesses that have the highest need for a small business loan. Instead, lenders tend to prefer to offer small business loans to those businesses that have been in operation for two or more years.
According to All Business, it is estimated that 95 percent of all entrepreneurs opened their businesses with capital from their own pockets, or from money they borrowed from relatives, friends, or another person in their community. Lenders want to see business owners risk their own funds in the business venture, and often require that the business owner or owners provide a minimum of 25 percent of the capital needed to start a business, and at least that much equity in the business if the business is already in existence. Simply stated, lenders aren’t as willing to take a risk when a business owner doesn’t even risk their own money in the investment. Businesses with a history demonstrating success in paying their bills for two and a half to three years will have the easiest time obtaining a small business loan because they’ve proven their ability to meet financial obligations.
When It Comes To Your Business, Plenty!