The truth is that if you need money to grow your business the best place to go to is your local bank or credit union.
They can get you:
- attractive interest rates
- flexible loan terms
- perks and incentives
The challenge with banks and credit unions, understandably, is that they must comply with strict policies and regulations, which lends to arduous document requirements and a slow walk to approval when it comes to small business loans.
Now, of course, if you have good to excellent business and/or personal credit, excellent cash flow, and possibly some collateral, and time to wait, among a few other qualifications, then you should absolutely consider approaching your local bank and/or credit union for the capital that your business needs.
Unfortunately, since the pandemic and other contributing economic factors that continue to this day, have caused many Small Business Owners to face some heavy credit challenges.
These challenges may have caused some disruption in cash flow which may have caused for your business to take a negative hit to its Dunn & Bradstreet (D&B) score, (if your business has one), and certainly may have negatively affected your own personal credit score.
These challenges, among several others, do cause for many Small Business Owners to ‘look-bad-on-paper’ which results in getting a DENIAL from a bank or a credit union almost every time.
Every small business is uniquely different and there are many funding options available which do not rely so much on a credit score, but rather take into consideration other aspects of your particular business, such as your industry, time in business, and monthly revenue.
If you have been denied a small business loan from a bank or a credit union, hope is not gone, you will be glad to know that there are still a few other options for you to consider.