Lending & Finance

 

09 07 2017

Business loans for entrepreneurs

09 07 2017

2 Obstacles Entrepreneurs Face When Securing Small Business Loans

There are a few basic things that any entrepreneur needs to start a new business, like time, lots of hard work and commitment, to name a few. Another universal need that shouldn’t be overlooked is money.

To get the funds necessary to keep your business moving forward, you’ll more than likely need to secure a loan. However, there are many obstacles that could get in your way of obtaining the all-important cash you need.

How do entrepreneurs get business loans

Here are a couple common ones and what you can do to overcome them:

Your credit is too low

When you apply for a business loan, your lender will check your personal credit report to make sure you’re a trustworthy borrower with a track record of paying bills on time and not carrying more debt than you can handle, Business News Daily pointed out.

If your credit score is too low, however, the lender may decide you’re too much of a lending risk. Maybe this is an accurate assessment, and maybe it’s not; in any case, you’ll need to find a way around this barrier.

For the long term, you can work on building up credit so you’re more eligible for funding later on. Start by paying your bills on time and getting rid of any outstanding debt.

For the short term, try seeking financing elsewhere. Alternative lenders typically are more lenient for low-credit customers because they understand there’s more to the story aside from the three digits of your credit score.

You don’t have enough industry experience

Banks generally like to see at least five years of successful industry experience before lending an entrepreneur money, Business News Daily explained. Of course, it’s hard to get this experience without growing your business, and it’s hard to grow your business without money!

If you’re opening a company in an industry you personally have years of experience in, this may help, such as if you’re an accountant opening your own independent firm. Also, having a solid business plan drawn up never hurts. This can show how, exactly, you’ll make money.

Lack of experience is another obstacle that an alternative lender may be able to help overcome. National Funding only requires one year of experience before loaning money to an entrepreneur.

National Funding financing for small businesses

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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

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The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

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I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

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The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.