As a small business owner, you understand that running a business can be unpredictable. Sometimes, everything goes smoothly, but…other times, you face tough challenges that seem beyond your control. Listen, we get it. While you can make wise decisions to keep your business afloat, external factors like economic downturns, stiff competition, a pandemic (lest we forget), and fluctuating customer preferences can make it hard to succeed. When your business struggles, you need financial help to get back on track. However, not all sources of funding are suitable for small businesses in distress.
How to Get Financial Help
Not all financial help is created equal. For instance, banks and credit unions may not always be willing to lend to a small business, especially a struggling business. Since underwriting a small loan costs nearly the same as a large one, banks often favor larger clients who generate more profit. Additionally, small business owners who seek loans from banks must provide significant collateral, including personal and business assets, which can be difficult or even impossible to pledge. Therefore, relying on banks or credit unions for help may not be practical.
Are There Other Options?
Another source of financing for small businesses is peer-to-peer lending platforms like Kiva. While some businesses have successfully raised funds on these platforms, most fail to do so. The competition is steep, and the average loan amount is typically small. Struggling small businesses must present a convincing case to outcompete other businesses in a better financial position.
Next Steps to Financial Help
If your small business needs financial help, Small Business Funding is a great option. Small Business Funding offers working capital solutions to small businesses, regardless of their credit score. Unlike traditional banks and credit unions, our applicants often get approved for working capital in as little as 48 hours rather than weeks or months. Similarly, unlike peer-to-peer lenders, we don’t make applicants jump through hoops. Once funding is approved, we disburse the funds within days, so our clients can get back on track when it matters most. To learn more about how Small Business Funding can help your small business, call us at 800-742-2995.