What to Expect in a Traditional Bank LoanEditor
Being a small business, you will (or do) need capital for your business at some point. There are many options, as discussed in “Loan Options for Your Business”. Ideally, entrepreneurs want to go the route of a traditional bank. So, if that’s a route you’re looking to venture down, there are some things you should know going into it.
*Accessibility: You probably have a bank you already deal with. They’re right around the corner. You have a relationship with the staff therefore will receive personal attention.
*They offer several programs from standard, term and more.
*Tax benefits (ask your banker about that).
*Lower interest rates are always appealing, rightfully so.
*Bank loans tend to offer longer terms.
*The application process is time consuming. Banks verify everything which makes this a bit grueling.
*Banks often do not grant the amount requested by the business owner.
*New businesses have a difficult time getting an approval. There isn’t enough of a history for them to look back on to gauge whether your business is a good risk. hence, making other funding options more enticing.
*Lengthy list of conditions before you receive your funds. Sometimes, the list is unachievable.
*Bank loans typically require some kind of collateral whether it be your home or another property. While you never intend to default on a loan, this can still make things quite stressful.
As always, do your homework and weigh your options. If you find that you’d like to take another avenue, feel free to give Fast Capital a call at 800-735-6107 and speak to one of our business advisors.