Where to Get Big Business Loans If Banks Decline You

Where to Get Big Business Loans If Banks Decline You

Did a bank just decline your application for big business loans?

Business owners use loans to keep their business running. Getting a loan could even be the last resort to salvage the business from bankruptcy.

However, banks are strict regarding their policies and requirements in giving out loans. Many applications are denied every day because they think that the borrower is not worthy enough for the loan.

It’s therefore important to understand the different requirements businesses must meet in order to get loans approved to increase your chances. However, even this cannot guarantee an approval.

Fortunately, there are alternative options that can be considered when your big business loan application has been denied. You can definitely get those at the best SME loans Singapore. Let’s check this out.

Are Big Business Loans Accepted?

Banks are the main source to apply for and be offered, big business loans. However, acquiring a large business loan from a bank is not easy. In fact, banks have been shown to have a low approval rate – 20% to 40% – when it comes to business loans.

Here are three simple things to think about before you apply for a big business loan. Make sure that

  1. Your paperwork is in order.
  2. Your credit history is good.
  3. You have substantial collateral.

However, fulfilling these three above points doesn’t guarantee the loan approval. It only ensures that your chances of receiving a large business loan from a bank will be fairly good.

It’s also important to note that banks require a long processing time for this kind of loans. Applications could take weeks or even months

When it comes to big business loans, it’s often get accepted when a business or institution has:

  1. More assets at their disposal, which can be used as collateral or sold off.
  2. Longer and larger history.
  3. Established reputations that are assumed to be a guarantee to the banks that they will be able to pay.

If you were rejected, then it’s okay. There is still a lot of loan providers that are also the  best SME loans Singapore. It’s time for you to start looking for those.

Alternative Options If Banks Decline Your Big Business Loans

Banks are usually strict regarding the required qualifications when giving big business loans.

However, don’t let this falter you. If banks deny your loan application, there are still other ways to obtain a loan. Don’t stop searching. There are alternative options where your loan application would be accepted.

You can turn to, if you really need to be approved for big business loans, other financial institutions.

1) Private Equipment Lenders

Private lenders are one source of big business loans. They include a variety of potential partners. These partners may include high net worth individuals, family offices, and even private investment groups.

A business’ collateral is what they exclusively look for, rather than the business’ credit. Their role is to buy the equipment for you as a third party and then you can lease it from them.

Private lenders can provide short-term equipment bridge financing and even hard money equipment financing solutions. Although they cost more than banks, they excel in speed and creative structures for big business loans. They can also close a deal with big businesses in a matter of days.

2) Private Working Capital Lenders

Private working capital lenders have approval rates as high as 90%, which often depends on the company’s situation and financial health.

Apart from accessing the needed capital, there is the ease of obtaining the funds because of their fast funding process. Big businesses can have more flexibility when it comes to the use of funds and reduced documentation requirements.

It’s also little to no covenants and all-around creativity of private lenders that think ‘outside-the-bank’.

3) Financial Institutions

Financial institutions are alternative lenders that are also commonly referred to as FinTech or peer-to-peer lenders. They can have a maximum approval of $1,000,000. They offer affordable and fixed monthly payments for big business loans.

There are also those that don’t require any hard collateral and upfront fees yet it still provides competitive rates for big business loans.

If you’re ready to get the  best SME loans Singapore, just go to this link https://www.capital-match.com/en.

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