HARD-MONEY LOANS
These are also short-term loans, but they are from private lenders and investors. Money lenders usually loan smaller amounts than banks and will almost always have higher interest rates. Because of this, it’s easier to qualify for these types of loans than for a normal bank loan. This route is not that uncommon for small businesses that don’t have enough credit or income history to go to a bank.
HOW LONG IT TAKES TO GET A LOAN
Banks’ and lenders’ websites may say it will take 30 to 45 days to get a loan, but I would apply much sooner than that. It will usually take anywhere from 45 to 130 days. There will be times you can get loans faster than that, especially if the lender is doing a favor for your broker. That’s why it really pays to use an agent. Still, don’t depend on that. Stay ahead of your financing options, and apply for one, with more than enough time to be comfortable.
HOW TO QUALIFY
Credit Score
This is one of the main determining factors. If your company has a positive history of borrowing money or paying back debts, you’ll get approved for a loan. The lender will usually look at your company credit score and your personal score. There is no set score you need to qualify, but anything under 600 is tough for hard-money lenders and even tougher for banks. If your score is 700 or over, you’ll most likely have your pick of types of loans.
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