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Most business owners know that they can apply for financing through the Small Business Administration (SBA). Fewer business owners know that there are alternative financing options which may be available to them.
Let’s take a look…
The SBA has an affiliation with the government and a long history of guaranteeing loans. This alone leads many business owners to utilize their service.
However, as with any business decision, it is important to understand who you are doing business with.
The SBA’s role is to guarantee a loan that is underwritten by a bank.
The SBA needs to funnel loan applications to the bank and the bank needs to approve loans for the SBA. This means that the customers interest are not always put first in their pursuit to do business.
In fact, a recent Coleman Report shows that 1 in 10 recipients of an SBA loan defaults.
Because business was done between the SBA and the bank even though the terms of the loan were not in the customer’s best interest. The bank now owns the customer’s business, home, car, etc.
So why are business owners attracted to SBA loans? The answer may be that it has been instilled as the acceptable practice.
That and the low interest rate.
Don’t be fooled by a low rate though, once the numerous fees are added in, the cost of the loan is substantially higher.
Also, the approval process for an SBA loan typically takes upwards of 6 months–during which time the business can be missing out on revenue opportunities.
Unsecured financing is a newer option. The first benefit can be seen right in the name….
If you are in need of financing for your business, call (877) 482-3008 to consult with a Business Financing Advisor, or fill out our simple 1-minute application online here to get the funding you need in as little as 24 hours.
Learn more about unsecured financing and unsecured small business loans and how it can benefit you!
National Business Capital is the top FinTech marketplace offering small business loans and financing. Harnessing the power of leading technology and smart people, we’ve streamlined the application process to secure over $1 Billion in financing for business owners nationwide.
Our Business Financing Experts work within our 75+ Lender platform to match you with the right option. Easily access the best low-interest SBA loans, short and long-term loans, business lines of credit and equipment financing all in one place.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.