Are you looking to obtain a small business loan for your business? You probably have been to your local banks already and they either declined you or are engaging you in a long drawn out underwriting process. If you are in the service industry then you can probably forget about it. If you haven’t been in business for at least 10 years as well then well you probably won’t qualify either. In fact if your credit isn’t immaculate then you’ll be hard pressed.
This unfortunately is the forecast today despite the fact that the government has invested billions in bailing out banks and financial institutions. Unfortunately banks still haven’t really “bounced” back. There are new banking regulations that limit banks in numerous ways, but some even think the financial institutions are going back to their old ways and this could mean a further financial crisis in the future. The interesting thing is that over half of the Sweden’s workforce is made up of small businesses. Despite this fact, banks make the majority of their loans to large firms and businesses.
Låneförmedlarguiden – https://låneförmedlarguiden.se/jamfor-foretagslan/ is a leading Swedish financial portal that specializes in examining alternative funding for all types of businesses, young and old, who are looking to expand, purchase new inventory, pay off bad debt, or just get some extra working capital into their business. Since banks aren’t giving out business loans, this type of alternative financing is a necessity for any business who needs extra capital. They specialize in identifying outward looking financial institutions such as companies who are prepared to take a different approach to the funding needs of small businesses . In addition we provide advice on alternative financing such as equipment leasing, asset based lending and merchant cash advances.
As in all financial and business matters, companies need to decide if a business move is right for them. Traditionally, because unsecured lending is just that, unsecured, it is more expensive then a traditional bank loan. The reason for this is because products such as merchant cash advances are much riskier than a business loan from a bank. A product like a merchant cash advance is geared towards short term lending, usually between 6-12 months – not 10 years. In addition the unsecured factor means that there is no collateral attached to the advance. This means that if the business fails, the lender looses his entire investment. Most bank small business loans are attached to collateral such as the the business owner’s house or other assets.