BANK LOANS
CRITERIA:
- Personal Credit Report
- Business Credit History                 Â
- Company Assets (buildings, equip., etc.)
- Possible Collateral
- Outlined Business Plan
- High Profitability
- High Income
- Industry Experience
- Business References
THINGS TO KNOW:
- Banks have strict regulations, resulting in an average 20-50% approval rate.
- Most banks require you to meet in person, not online or over the phone.
- They will check your credit and background extensively.
- When applying, you’ll be required to secure your loan with assets and a certificate of deposit.
- Funds may take several weeks or months to receive.
- In addition to your loan payments, you will pay closing costs (flood certificate, title/appraisal/filing fees, etc.).
- Watch out for variable interest rates which provide a lower initial payment, but increase in the future.
ALTERNATIVE FINANCING
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CRITERIA:
- Financing History: credit card and income statements
- Future Business Plan
- Industry Experience
- Potential Profitability
- Credit Score Approximation
- Business References
- Open for More Than 2-3 Months
- Cannot Be in Bankruptcy Status
THINGS TO KNOW:
- Alternative financing has lower restrictions, resulting in higher approval rates.
- Applications and approvals can be online and over the phone for ease.
- Emphasis is not on your credit score.
- Funding may be received in 24 hours.
- More likely to receive large sums of money than from a bank.
- The application process is very short and may take an hour or less.
- Once you complete the online application, you can immediately speak one-on-one with a FMS representative.
