For larger businesses, with a couple million dollars or more of annual revenue, the lending market has definitely improved and that is where banks are largely focusing today. For bank lenders, it is really about managing risk rather than capturing market share. Although, for businesses with revenue of 1-2 million dollars or less, which represent about 95% of all the US small businesses, the prospect of getting a bank loan is still not that great and doesn’t more information seem to be changing anytime soon. Only about 10 to 15% of small business loans are granted by banks.

When applying for a loan at the bank, they not only look at your personal and business credit score, they also look into your cash flow, tax returns, as well as other types of payment such as possible collateral. If you don’t have a high score in all of these areas, your small business loan will most likely be turned down by the bank.

Today, when small businesses can’t get funding from visit our website banks, they turn to other sources for acquiring a loan. Some may turn to loan brokers to help them. If this is the option you choose, you need to be very careful about the loan broker you work with because they tend to involve a lot of different parties. Most people don’t realize that all those different parties can end up pulling your credit report which ultimately ends up hurting your credit. There are also a number of internet lenders out there. Again, each time these parties pull up your credit report, the more it ends up hurting your credit score.

Another option for a small business loan is a merchant and business cash advance. This has become very popular over the last few years particularly because rather than being based mostly on your personal and business credit, which is what most bank loans are based on, it’s based on several things such as your cash flow, account balances, over-drafting records, as well as how many deposits you make each month. Typically most merchant cash advance providers don’t have a minimum FICO score, whereas, a bank’s FICO score is usually somewhere up in the 700 plus range. It’s because of these minimum FICO scores required by banks that potentially 40 to 50% of the market will never have access to a bank loan.

With a cash advance people aren’t looking to a third party source of repayment. It’s because of this reason that merchant cash advance and business cash advance providers can take a different outlook. Because the term is shorter, usually a period of 6 to 9 months, and because merchant cash advances are paid back daily with an automated repayment process, typically the business loan amount funded is 2 to 3 times higher than a traditional business loan.

If you have a great personal relationship with your banker, you’ve got strong business and personal credit, you’ve got great cash flow and business numbers, and you have an additional source of capital then going with a bank loan may be your fastest and possibly the most cost effective route.

If that is not the case however, then in today’s current environment the merchant cash advance is clearly the simplest, fastest, and most sure fire way for a small business owner to get funding for their businesses. A merchant cash advance typically can be approved within 24 to 48 hours and sometimes funded within a day or two after that. Getting a merchant cash advance is definitely the simplest and fastest in this market and that is why thousands of customers every month are now using a merchant for business cash advance.