Almost everybody in the world dreams of starting their own company without thinking about how much pressure business owners face on a daily basis. As the head of a company, you’re responsible for turning over a healthy profit both for your salary and the livelihood of your employees. The last thing any business owner wants to do is start laying people off because of a lack of profits, but thanks to globalization, the recent global economic crisis, and a growing population, ensuring business success is now arguably harder than ever before.
Sometimes, companies go under because they simply don’t have access to the cash they need for investment purposes, and that’s often because the banks won’t grant loans. In this day and age, banks are increasingly worried about lending money to small and medium-sized businesses through fear they won’t get their money back, leading many companies to believe that they have no other option but to lose employees or even close their doors for good when they experience tough financial times. Fortunately, there is another way to get business loans when they banks say no.
If the banks won’t sympathise with your situation and keep denying your loan application, you might want to try applying for a loan from a private lender. Sometimes, private lenders get a bad rep, but reputable companies can give you a helping hand when you need it the most. Plus, as you’ll soon see from the information detailed below, it’s often more beneficial to turn to a private lender instead of a bank.
The Benefits of Private Lenders
Don’t let your business go under if all it needs is some investment. Here’s why an increasing number of small to medium-sized companies contact a private lender when they need to give their business a boost:
- Private lenders give you the cash you need quicker than banks – Applying for a bank loan can be a bureaucratic nightmare, and because of this, it can often take weeks or months to get the money you need – if you get it all. Private lenders generally make their application process much simpler and can often grant loans the same day you apply.
- Banks rarely lend cash to start-ups – Because the banks are so worried they won’t get their money back, they usually only lend to companies that have been established for at least two years and can prove they’re profitable. If you need a loan to get your business going, a private lender can help when a bank won’t.
- Borrow as much money as you need – You may need $100,000 to resuscitate your business, but banks rarely grant loans over $50,000. Fortunately, many private lenders grant loans of up to $500,000.
Banks Aren’t the Only Way
If you need a loan to get your business back up and running, you ought to at least consider applying with a private lender. You can get as much cash as you need precisely when you need it, and it doesn’t matter how long you’ve been in operation.