Getting funds from traditional lenders has many benefits. You can get the best rates with the best banks and credit unions. But these lenders don’t always cut it. When you’re going through normal ups and downs, it can be hard enough if you have a sudden hiccup in your cash flow. But during these chaotic times, there is even more need for fast, accessible business financing.
Traditional loans are harder to qualify for. But if you do qualify, often times the terms are too stringent. Fear not though, as there are many non-bank options for Cleveland-area business owners.
Why banks don’t always work
If you need working capital in a hurry, banks won’t be much help. Processing times take at least 5 business days. Most times, even longer. Also, bad credit can restrict your access to funds. These two problems are what leads most people to a non-bank lender.
Non-bank lenders offer a wide range of pricing. That’s because they offer fast funding, without much focus on credit. If you have good credit, they can still offer good rates. But no matter what your credit score is, they will push your loan through way faster than a bank could.
Top Non-Bank Options For Funding Your Cleveland Business
Capital Source Group (Ohio City)
Capital Source Group is a business loan brokerage firm located in Ohio City with an HQ in Chicago. They have access to a network of over 70 lenders, and will help navigate you through the process to get the best deal. Established in 2015, Capital Source Group is a highly rated firm on Google Reviews. Contact a representative in their Ohio City office.
Kabbage (Online Lender)
Kabbage is a fast business lender known for their speed and the size of their loans. They are most well known for their popular line of credit.
You can get a line of credit of up to $250,000 from Kabbage. You can then choose a term of 6, 12, or 18 months. The APRs on the Kabbage line of credit are higher than the rates on their term loan.
A Kabbage term loan is priced similarly to the company’s line of credit. You have to pay similar upfront fees, and the rates are a bit lower than the rates on their line of credit.
Kabbage is one of the easier business lenders to qualify for. The primary qualification you need to meet is an annual revenue of $50,000, or monthly revenue of $4,200 for the last three months. You also need:
- A credit score of at least 560 for likely approval
- To have been in business for at least three months
BlueVine (Online Lender)
BlueVine provides business loans and lines of credit. They also provide several other business financing products.
They are not the most affordable lender, but their loan sums can be very high. For example, their invoice factoring can offer you up to $5 million in funding.
Because BlueVine offers so many different products, they have many different sets of borrowing requirements. Minimum credit scores start at 600 for most of their products. Their repayment terms are also shorter than most of their competition’s.
FundBox (Online Lender)
FundBox is an alternative lender that’s known for speed and low requirements. They are one of the easiest lenders for funding your Cleveland business.
Like all lenders, FundBox will assess your needs based on many different factors. But your credit score is the most important for their assessment of your business.
If you have a low credit score, there is little you can do to avoid high interest rates. But that doesn’t mean that FundBox is a particularly expensive lender.
If you have excellent credit, you can get very good rates with a FundBox business loan. In fact, their interest rates start at just 4.66% of the value of your loan or draw amount. This is a very competitive rate, but you have to be running a financially competitive business to access those low rates.
The basic FundBox requirements are:
- Minimum revenue of $25,000 per year
- At least 3 months in business
- A minimum credit score of 500
- Invoices with customers – for their factoring option
Alternative Lending Marketplaces For Cleveland Businesses
Choosing the right alternative lender can be tedious and difficult. Knowing which lender is offering the best rates takes time. You have to send several applications and evaluate their subsequent offers.
There are platforms you can use that will do most of your homework for you. These alternative lending marketplaces just need some basic information about your business. Using that, they’ll match you with several lenders. The lenders they match you with will meet the requirements you set. They’ll also only list lenders who’s requirements are met with the information you provide.
SuperMoney is a lending marketplace with a loan matching algorithm for many types of loans. Compared to other lending marketplaces, SuperMoney offers one of the better interfaces. Because of its simplicity, comparing their partner lenders is very easy.
One thing we noticed about SuperMoney is that they work with some of the largest and most recognizable alternative lenders. This means that you can be sure that they work with reasonable partners like:
Biz2Credit is a particularly fast business lending marketplace. With their 4-minutes application process, Biz2Credit offers extra convenience. Once you finish the application, you should hear back from them within 24 hours. After you are approved, Biz2Credit sends your funds within 72 hours.
It is very easy to qualify for Biz2Credit. There are no stated time-in-business or revenue requirements. Also, if your credit score is 560 or higher, you should qualify for at least one of their loans.
They are also a particularly accessible marketplace. Biz2Credit is available in all 50 US states. But keep in mind that some of their loan options are limited to only a few states.