The pace of business moves quickly, and when changes occur in the marketplace, the most successful small businesses are flexible and able to adapt quickly.
Sometimes that flexibility comes in the form of hiring more staff. Depending on the small business, it might also mean cutting costs or restructuring. But no matter what changes are required to keep your business competitive, in almost all cases it is impossible to succeed without proper business financing. That’s why getting a small business loan is so important.
It Takes Money to Make Money
The old saying “it takes money to make money” is particularly apt in this case, and if your company happens to need a cash infusion to stay profitable over the long term, you’ll need to find a small business loan that works for you, your organization and your employees.
This is true if you’re in the auto business and are looking for dealer financing, a contractor searching for the best construction loan companies, a retailer looking for some form of retail financing, or a spa interested in spa business loans.
The trouble is, without the support of a traditional financial institution, some fear that their credit may run dry at the worst possible moment. That’s why for companies that are in search of loans, business can only truly continue to grow if you have the right partner.
Read on below to learn about what you should look for in an online lender, and how the right business loans can keep your company flexible, adaptable and profitable, no matter the situation. With the right financing source for your small business, the sky’s the limit!
What Should I Look For?
You’ll want to choose an online lender that can satisfy (at least) the three following essential conditions.
First, when searching for a loan for business purposes, you’ll want to choose a company that makes the process convenient. That means finding a company that can help you sort through the various loan options and pick the best one for your business using an application that is quick and easy. Small business financing should be something you can get started in minutes, not months.
Second, you’ll want to choose a loans or financing company that provides you with business loan options at the right price. In other words, you should avoid overpaying, and instead get the best small business loan Canada can offer by comparing rates from from a range of online lenders and financial institutions.
Third, if your small business has been rejected for a loan by a major financial institution in the past, you’ll want to do more than apply for financing; it is equally important to simultaneously improve your credit as well. Just by paying back your small business loans, you can build your credit over time, which will result in qualifying for even better rates in the future!
Is it Hard to Get a Small Business Loan?
Typically, small businesses in Canada use banks and major financial institutions when they can provide collateral, have good credit, and aren’t in a hurry.
However, many small businesses are often considered too risky for a loan by the banks, particularly when elements such as low sales volumes and cash reserves are taken into account, or even the poor personal credit of the owner. Add to that the fact that the average time to receive a loan of this kind takes between two and six months, and using a bank becomes a much less attractive proposition.
This is where alternative lenders come into the picture. While their Annual Percentage Rate (APR) will almost certainly be higher than the banks, the advantage of using them is that you’ll be able to get the loan more quickly, receive a loan without having to put down collateral, and do so even if your credit history is less than stellar.
What Credit Score is Needed for a Small Business Loan?
If you’ve chosen the right online lender, getting approved for small business loans in Canada is as easy as it gets. As long as your score hits the minimum, you should be good to go once you apply.
For larger institutions like banks, the score you’ll need to secure the loans you want will be somewhere above 680. However, for smaller lenders willing to take on more risk, you can typically get financing with credit scores even lower than 680.
Your ability to secure loans will depend on a number of factors, not only your credit score. To discover whether or not your score is enough, the best way to find out is to apply – especially if the application process is fast and easy.
Lendified Lets Your Shop and Compare
If you’re a small business in Canada that has been in search of financial help, Lendified might be the perfect solution.
It’s simple: All you need to do is share some information about yourself, your business, and its performance. Using our high-tech software, we’ll pre-qualify you for the loan in minutes, shaving valuable time off what can sometimes be a lengthy process. Not only that, but you can get your loan in as little as 48 hours!
Sound simple? It is! With up to $150,000 in available funding, a free quote provided instantly online, and flexible repayment terms that can last up to two years, the answer is Lendified. Check out our online form today, or contact us and we’ll be more than happy to answer any of your questions during business hours.
See the difference Lendified can make for your small business today!