Getting a bank loan, especially an SBA loan, is one of the most common ways to fund a business. This once was one of the only ways that people could get funding to run a business and this has led banks to abuse that power. Now that new merchant funding options are starting to crop up, banks have started to set up smear campaigns against alternative lenders.
Truth be told, banks have a lot to hide from patrons. We’re willing to be companies and CEOs would be less likely to take out a loan if they knew the following facts...
Your personal credit score could be a reason that they reject you—even if your business has great standing. Most people never realize how choosy banks are when it comes to accepting loan applications. The rules of business lending greatly favor big businesses. Small business loans, on the other hand, often require the business owner to have excellent credit, even if they’ve been in business for years.
Most banks will require collateral, and in most cases, that means they’ll expect business owners put down their home to do so. This doesn’t turn out poorly if you pay your business loan back on time. However, if you pay late, they can foreclose on your home. This is how many business owners end up homeless.
At times, they may set you up to fail. This is the sad, awful truth. Around 9 out of every 10 businesses will fail within the first five years. This means that banks actually give loans to borrowers they feel will be unable to pay back the loan...in hopes that they can capitalize on the collateral.
They do not typically offer hardship excuses. Bank loans are far riskier than people let on, and it’s not just about the issue of losing your home because of a failure, either. Life happens, and at times, it can mess with a business’s ability to make a profit. If a natural disaster strikes or if an accident happens in your building, you won’t be able to open up shop. Banks won’t care, though. You will still need to figure out how to pay that bill. Is this fair? Not really—but that’s why people are signing up for.
Banks are afraid of merchant cash advances out doing them. Bank loans are a great source of income for banks—and they want to keep it that way. Unfortunately for them, merchant cash advances and other forms of alternative lending are eating up their profits. So, they do what they can to advise people to borrow against their best interest.
If you are looking for a merchant cash advance, it’s time to call Maple Advance. We can make it happen, and can help you avoid the danerous traps that banks lay out for you.