What are the Qualifications for a Business Loan with National Business Capital vs. a Bank?

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Thursday, June 22nd, 2017

One of the most frequent — and also among the most important — questions that we receive here at National Business Capital, is what distinguishes our qualifications for a business loan vs. a bank’s qualifications. Below is a high-level factor-by-factor overview of the key differences:

  • Qualifications for a Business Loan: Credit Scores

At National Business Capital, our clients do not need excellent personal and business credit scores. Impaired or bad credit is typically acceptable, including scores below 500.

Banks require borrowers to have excellent personal credit and business credit scores.   

  • Qualifications for a Business Loan: Time in Business

At National Business Capital, our clients need to have at least three months of business history.  

Banks typically require business loan applicants to have at least two years of business history (and sometimes longer).

  • Qualifications for a Business Loan: Usage

At National Business Capital, we don’t impose restrictions or covenants on how our clients can use their loan.

Banks typically mandate that loans must be used for a specific purpose (e.g. purchase inventory, expand into new marketplaces, etc.).

  • Qualifications for a Business Loan: Collateral

At National Business Capital, we do not require collateral for our loans (i.e. our loans are unsecured). This means that our clients’ assets are safe from immediate repossession in the event of missed payments or default.

All bank loans are secured by personal and/or business assets, which will be repossessed in the event of missed payments or default.  

  • Qualifications for a Business Loan: Turnaround

At National Business Capital, we typically assess applications and render approvals within 24 hours.

Banks can take several months to approve an application. Some SBA loans (which are facilitated by banks) can take over six months to push through the application process.

  • Qualifications for a Business Loan: Approval Rate

At National Business Capital, our approval rate is about 90%.  

Approval rates for banks business loans are around 20% (big banks) and 40% (small banks).

  • Qualifications for a Business Loan: Application

Applying for a business loan with National Business Capital is fast and simple, and takes about two minutes via our secure online application form.

Applying for business loan from a bank is a time consuming and complex process, and includes submitting a business plan, financial statements, personal and business credit scores, tax returns, resumes, legal documents, AR and AP invoices, and so on.

Learn More

To learn more about partnering with National Business Capital to quickly get the financing you need to drive your business onward and upward, contact our team today or fill out our two-minute application.

For more information on how to get business funding when banks say no, download our FREE eBook today:

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Our approval process takes less than 24 hours.

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