Strategies to Secure Business Loans for Startups

It is no secret that small businesses (and startups in particular) have a very hard time securing loans from banks. For several reasons, banks are extremely reluctant to grant loans to small businesses. Long gone are the good old days when simply being a friend or acquaintance of the bank manager was enough to build trust and obtain a loan. But the small banks of yore have now been taken over by big banks that are far more impersonal and completely business-like.

To qualify for a loan, applicants must possess several qualities.

One of the most important is a good credit score. To be meaningful, it should have been maintained for a relatively long time period to satisfy banks that the client is capable of repaying the loan. This is quite impossible for most startups.

You must also possess a very good record of cash flow which is quite ironic because most businesses want to borrow to alleviate cash flow problems.

Banks also want their customers to own a high capital amount so that assets can be liquidated in case of a default on loan payment. This again poses a problem because most startups are quite small.

The problem becomes worse because banks regard small businesses as high risk customers since they are the most likely to default on loan payment. They usually don’t have enough assets that can be liquidated to repay all of their debts.

This has created a strange scenario: banks are now lending only to the big corporations because they are least risky. These corporations don’t need a loan as much as small businesses do. Many small businesses have a dire need for loans but they are unfortunately denied. So loans are being granted to those who can survive without it and denied to those that have a much more pressing need.

That’s not good because loans are often the lifeline for startups facing a temporary cash shortage. Even a healthy startup can easily go out of business simply because of restricted cash flow. That can happen due to any reason: payables delaying payment, too many credit transactions, too much working capital tied up in goods having an inherently low turnover, etc.

The bottom line is that even healthy startups can go out of business due to several factors that have nothing to do with poor performance. The startup may be doing good business and yet face problems leading to its closure.

Should such startups be denied loads? Certainly not.

That’s why we possess a wide range of financial products that will adequately address the needs of your startup. Obtaining finance has never been easier for startups.

Our easy advance is approved in only 48 days and requires no financials, tax returns, asset documentation or personal guarantee. Such lenient terms and conditions can never be expected from the Big Banks.

You can also get a line of unsecured credit up to $150,000 in just 24 hours.

We have many more products to suit your needs.

Contact us today.

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Telephone:  (347) 755-2257

Email:          info@klbbusinessfunding.com