Why are Small Business Loans for Minority Entrepreneurs Hard to Get?
Something is Terribly Wrong With Minority-Owned Businesses Funding.
It’s Time for a Change!
Most minority entrepreneurs are blocked from access to small business loans—and the resources they need in order to get them—due to forces outside of their control. Fortunately, there are small business loan options specialized to help minority-owned businesses the capital and resources they need to grow.
But before we jump the gun, it’s important to understand unfair reasons why minority entrepreneurs are typically defined in the first place.
Here’s the Facts
Recent reports from the Minority Business Development Agency clear that something is terribly wrong in the small business financing industry for minority entrepreneurs.
19% of all minority business owners don’t apply for small business loans due to fear of being declined. Getting small business loans for minorities can seem like an impossible task, discouraging many from starting a business in the first place.
This is backed by the fact that non-minority business owners being three times more likely to get approved for small business loans than minorities.
This partly has to do with the wealth gap clearly present between minority and non-minority business owners. A good source of capital is essential not just for startups, but for any business to prepare for unexpected challenges and growth opportunities.
Unfortunately, statistics taken from the same study above show that non-minority entrepreneurs start their businesses with 16% more capital than minority entrepreneurs on average.
Another reason is due to the fact that minority entrepreneurs don’t have access to the business services they need to build credit, and increase sales. Typically, business owners use FICO boosting repair services, marketing agencies, and sales improvement strategies given to them by unaffordable business consulting services.
All of this translates to minority-owned businesses with even the most ambitious and promising growth strategies and ambitions getting rejected for small business loans needed for capital.
6 Best Types of Specialized Business Loans for Minorities
There are over 50+ different types of small business loans for minorities needing capital to grow in virtually any way possible. Each can be tailored to fit the specific needs business from virtually any industry. Here’s a few specialized small business loans for minority-owned businesses:
- (Long and Short) Business Term Loans: These are business loans that come with fixed rates, and fixed terms. These can be used for any business purpose, with virtually no industry restrictions whatsoever.
- Revolving Business Line of Credit: Get a line of credit. Take out whatever amount you need from the total, whenever you need it. You can then put the amount drawn back into your business credit line, and it becomes immediately available again!This is especially useful for minority entrepreneurs with low FICO, as each time you use capital from your credit line, you’re boosting your credit at the same time!
- Working Capital Loans: The best type of loan to help minority-owned businesses bridge gaps in funding. Minority business owners can face stretches of time with limited revenue due to anything from seasonal changes, to slow customer payments. Use these loans to get the capital you need to seize any opportunity, and keep your business running smoothly.
- SBA Loans for Minorities: With financial services that help get business owners SBA financeable, those that lack the 685+ FICO or $125K+ needed to qualify for a traditional SBA loan gain the tools and capital needed in as little as 24 hours.Unlike any other SBA loan, our revolutionary Hybridge SBA Loan™ gives you the option to receive an initial capital injection in as little as 24 hours. Use this to pay off any tax liens or judgements that get in your way. You can also use it to bridge the expedited SBA funding process we offer (average is 45 days, compared to 6+ months from banks), and then pay it off once you get your SBA loan, reducing your cost of capital!
- Business Equipment Financing: Purchase, lease, or upgrade equipment as soon a single day after applying. Only the equipment obtained serves as collateral, so no personal or business assets are put at risk!
- Merchant Cash Advance: Get fast cash in advance of customer payments. Rates vary depending on how fast or slow your business generates sales. This means the less you make, the less you have to pay. This ensures payments are made with ease, and without worry of capital borrowed burning a hole in your wallet.
How Small Business Loans for Minorities Help
Without capital, you can’t have growth. Without growth, you can’t get funded. This is a vicious cycle that financing companies like us need to stop in its tracks.
To create a space for minority-owned businesses to equal access to the opportunities easily obtained by their non-minority counterparts, we created a line of exclusive small business loans that equip minority business owners get the business loans they need regardless of FICO and financial history – in as little as 24 hours! Here’s a few ways our business loans are innovating the way minority entrepreneurs grow:
- Easier Qualifications: The results of creating a simplified approval process for minority entrepreneurs have been incredible – our approval rate of over 90% for minority business owners speaks for itself!All you need to qualify is a FICO score of 625 or above, OR an annual gross sales minimum of $100K. Not both, just one or the other! Simplified qualifications also include no collateral leveraging and time in business necessary! Take advantage of this to protect your assets, and ensure you have the capital to launch your business! Our approval process for minority-owned business owners come with a streamlined approval process that does not solely depend on credit score and financial history. Because any business should only ever be defined by the size of their ambition.
- Services to Help Become Quickly Financeable: Our business loans for minority entrepreneurs come with services that can get any minority-owned business financeable ASAP. Through these services, including credit repair and sales improvement services, even the toughest business loans to get like SBA loans become quickly accessible!
- Greater Variety of Options: No two businesses will benefit from the same financing option. However most times, lenders will leave minority-owned businesses with only one or two options, and tell them that it’s their way or the highway. NEVER believe anyone who tells you this!Minority business owners who apply for small business loans or contact us for assistance receive access to over 75+ industry leading business lenders, each specialized to help minority business owners in different ways. Because with a greater variety of financing options, comes greater opportunities for growth!
- 24/7 Access to a Business Financing Advisor: Never be left to go through the funding process alone. Ensure you’re aware of all your options, minimize time and capital spent, and make sure you blast through any roadblocks in your way with 24/7 access to a Business Financing Advisor. Access to industry leading professionals in business financing is a must-have. Most minority business owners aren’t aware of the vast variety of business funding options to choose from. Assuming they won’t qualify due to unreasonable demands and requirements, it makes sense that minority business owners don’t extensively shop for different options in the first place.To help find the perfect funding option for you, and ensure there’s no hiccups in the funding process, minority business owners are equipped with a personal Business Financing Advisor from start to finish. They help by preparing all necessary documents for you, minimizing paperwork, shopping through connections to 75+ specialized lenders to find the perfect financing option for you, while guidance and advice throughout.
How to Get a Minority Small Business Loan in 4 Steps:
- Apply online by filling out our 1-minute application, or contact us at (877) 482-3008 to get started right away and review your options.
- Our team of Business Financing Advisors will contact you in seconds, excited to learn how they can help grow your business.
- Your personal BFA will connect to an exclusive network of lenders to find the perfect option for you.
- Receive funds in as little as 24 hours!
Now is the Time to Get Growing!
Now that the economy is on the upswing, it’s a better time than ever for minority-owned businesses to seize their opportunity to grow! Contact us or fill out your application to get started, and let’s get your business funded!