Don’t look now but 2024 will arrive in just one month’s time! As 2023 draws…
As far too many Canadian business owners are aware, it can be extremely difficult to secure a business loan from a bank. There are numerous requirements that many business owners simply cannot meet. It can be argued that banks are scared of not having their loans repaid. And, in many cases, they have legitimate reasons for their concerns.
After all, no bank is interested in lending out money that won’t come back to them with interest. Therefore, there are a number of reasons bank loans are so hard to come by.
You have bad credit.
Have you had any late payments on a credit card? Have you ever defaulted on a loan in the past? Have you ever declared bankruptcy? Do you have any accounts that have gone past due? Answering “yes” to any or all of these questions will scare off your bank from approving your loan. As well, if your business is fairly new, you may not have enough years of operation under your belt to have established a respectable credit history.
You have no collateral.
“You mean to tell me that if you aren’t able to repay your loan that we’ll be left on the hook for the unpaid money?” Essentially, this is a question that a loan officer would ask (or probably think) if he/she was informed that a business loan applicant had nothing of worth to put on the line. Collateral is generally required (your house, for example) so that banks can rest assure that they can seize your assets if you can’t pay them back.
You didn’t prepare yourself.
You can’t simply walk into a meeting with a loan officer and expect to be given money. You need to do your research. It’s important that you’re able to give clear and detailed information about your company’s history, ability to make sales and ability to pay back loans. A thorough business plan that outlines what you intend on doing with the loan to not only have your business profit, but to ensure the bank a return on its investment is necessary.
Your cash flow is weak.
Banks get nervous when business owners can’t show that they have enough cash flow to make their monthly payments. Cash flow is also necessary to pay employees, buy inventory and pay rent. It’s important for small business owners to clearly outline how much money they have coming in and how much money they have going out each and every month.
As you may have guessed, there are numerous other reasons that banks may deny your loan application. But that doesn’t mean that you’ll never get your hands on the much-needed cash to grow your business. At Synergy Merchants, our unique merchant cash advance program only requires that you accept credit cards and debit cards as methods of payment from your customers!
By taking a look at your average monthly sales amounts, we can determine how much of a cash advance you can be approved for and what it will cost. The process literally takes minutes and you can actually be approved and funded within 24 hours! For more information about our unique merchant cash advance program, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at firstname.lastname@example.org.