What’s the Best Way to Get Long-Term Funding?

February 22nd 2019 at 5:36pm Published by firstdownadmin

small business funding

Getting a business off of the ground requires a lot of funding. You will need money to pay for location, equipment, materials and staff members. If you don’t have enough money stashed away in a savings account, you’re going to have to find a reliable resource to help you acquire all of your business essentials. Read ahead to find out why First Down Funding is the best place to apply for long-term funding.

Traditional Banks Are Not as Helpful as You Would Think

When people want to get access to large amounts of funding, they immediately think of going to a bank for help. But, this move is not as rewarding as you would expect. Many small businesses have trouble getting any long-term funding from banks. If you’re wondering why banks refuse to help owners acquire the means to start or improve a business, here are three common reasons behind funding rejections:

Banks Prefer Larger Businesses

Studies have shown that banks support large businesses over small ones because they ask for larger sums. And due to their size, they appear to have a lower risk of failing to pay the sum back. It feels unfair to support businesses that bring in substantial profits and that have a significant influence on the market, but this is the reality. Small business owners that have to work tirelessly to stay afloat will have a harder time getting a boost from banks while established businesses that aren’t struggling receive financial support.

Banks Want Businesses with Long Track Records

Banks want to fund businesses with long operating histories because they believe that they’re less of a funding risk. Young and brand-new businesses can’t rely on a track record to make them appear like reliable choices. 

The situation creates a Catch-22. Young and brand-new businesses don’t have the operating histories to prove that they are worthy of accessing funds, but they also can’t stay open long enough to create a long operating history when they don’t have any funding. They can’t get help unless they’ve been successful, but they can’t be successful unless they get help.

Banks Want Owners with Great Credit Scores

Banks have incredibly high standards to approve of small business funding, including exceptional credit scores. A business owner with low credit scores has a high chance of getting their application for funding outright rejected because they’re considered to be a bigger financial risk. It can take a long time to modify a credit score, especially if you are trying to bring up the rankings from poor to exceptional.

Insufficient credit history is a massive hurdle for new entrepreneurs to contend with. If they want to meet a big bank’s high standards, they might have to put their dreams on hold for a long time.

Why Should You Turn to First Down Funding for Help?

As you can see, the bank has steep and often unfair standards that the average person can have difficulties matching. The good news is that you don’t have to go to a bank at all. You turn to First Down Funding for the long-term business funding and support that you need. Switching to this alternative method avoids the downfalls that come with traditional banks like requiring a large business size, a long operating history or a high credit score. It also comes with noteworthy benefits that make the application process much easier to handle.

Faster Approval Process

When you go to a bank to apply for funding, you have to wait a long time to see the results. It can take weeks before you get your application approved, and then it will take several more for you to access the funds. You can’t make essential business purchases without having the funds on hand, so you will have to put your plans on hold until you can finally get the money.

On the other hand, you can get fast approval and fund access with First Down Funding. You don’t have to make an appointment with any advisors to fill out an application. You can go to the official website and fill out an application there. Using cutting-edge technology, we assess the submitted application and determine if it should be approved right away. It only takes minutes. You can have your approval within the same day that you send the application.

The same day funding approvals help business owners access their funding right away so that they don’t have to put their plans on pause. They can have their application accepted and approved on the same day, and then they can access the money soon after. The typical funding time is within 24 to 72 hours.

Smaller Risk of Rejection

One of the main differences between small business funding vs big banks is the risk of application rejection. As previously mentioned, big banks have high standards that must be reached in order to gain approval. If those standards aren’t met, the client is bound to get their application denied and leave empty-handed.

On the other hand, small business funding doesn’t have the same standards. High credit scores aren’t an essential part of their approval criteria. Clients aren’t required to offer collateral or down payments to allow the funding to go through. The only requirement is proof of overall business health. These simpler standards mean that more small businesses can avoid rejection and get the funding they need.

Flexible Repayment Schedule

Another benefit of choosing this method for long term funding for your business is that the repayment terms are fair and flexible. Choosing funding from a traditional bank could saddle you with a rigid repayment system that can financially overwhelm you. Soon enough, the funds that were designed to help your business burden you with bad credit and lure you into debt.

The funds are meant to help your venture thrive, not to stunt its growth. By having a flexible system, your business can repay the amount without any additional stress.

Unless you’re sitting on a lot of savings, long-term funding is essential for your business’s development. You can use it for materials, equipment, staffing, or some other feature that you consider vital for advancement. As long as you apply in the right place, you’re sure to get the funding and meaningful support that you need, and when you need it.