It’s no secret that many small businesses are struggling these days, and as loan approval rates continue to be a fraction of what they were a year ago, getting back up and running has proven difficult. Thankfully, there are alternatives. Products such as a business cash advance give small businesses the opportunity to get the funding they need without the strict qualifiers, lengthy application processes and crippling payment terms that come along with a traditional bank loan. Here we take a look at three reasons now is the time to seek alternative funding.
Bank Loan Approval Rates Have Dropped
Bank loans were already difficult for many small business owners to obtain, and those approval rates have dropped significantly in the last year. “In February 2021, small business loan approval percentages increased slightly to 13.3% from 13.2% in January 2021. This contrasts dramatically to the same time last year, when loan approval rates to small businesses from big banks stood at 28.3%.”
Credit Unions Are Backing Off As Well
Many small businesses have sought to borrow from their credit unions, but that alternative has taken quite a dip in approval rates as well. “Biz2Credit’s report also shows how approval rates made by credit unions have also declined in recent months. A year ago, credit unions approved almost 40% of the applications they received. In February 2021, this figure was at 20.3% and slight fall from January 2021 when credit union approval rates stood at 20.5%.”
Things Are Opening Back Up
After a year of shutdowns and restrictions, many areas and businesses have begun to open back up fully. With the reduction in revenue that has been experience during the pandemic, many small businesses will need an infusion of cash to get operations back up and running at full capacity. Marketing campaigns, staffing, renovations, deep cleanings and equipment replacement are all integral pieces of running a small business that may need an investment as things gradually get back to normal.
Business cash advances are an alternative to loans. Traditional bank loans often require a strong credit history and collateral, take weeks for approval and have structured repayment amounts and due dates. A business cash advance from Quikstone Capital is different - it's a business loan alternative. We fund a minimum of $5,000 up to a maximum of $250,000, depending upon your average monthly sales and the strength of your business. Your business may qualify for more than you think. Click below to apply now!
