Tampa, FL (PRWEB) February 25, 2014
The world of traditional lending is over...
But there is still hope for business owners.
Business owners are moving towards alternative forms of financing in the search of short term access to capital. Due to the restrictions banks have in place, specifically for small businesses, more and more business owners are searching elsewhere when looking to grow.
One of the places business owners are going is to private equity firms that offer revenue-based loans. Revenue-based loans are based solely on the companies stability to continually deposit money into their bank account.
In speaking with Managing Partner Nick Bentley he states, "Business owners who are cash flowing, regardless of their personal credit, are an attractive lending risk. Offering business owners a cash infusion based on deposits is low risk. We simply are filling a void in the marketplace to business owners in need."
There are many advantages to this type of loan.
The first major advantage that sticks out with business revenue lending is the ability for the business owner not to rely on personal credit. Personal credit has little bearing on the underwriting decision when it comes to these types of loans. In fact, business owners showing consistent profits can access up to 80% of their deposits even if their personal credit score is 500. Compared to traditional lending, the ease of acquiring the capital necessary to grow is second to none as all banks require a minimum FICO score of 660 (and that's only is the rest of the business is very solid).
In addition to the personal credit having a less pronounced effect on the loan application, business owners can have access to capital within 2 days. These types of loans move very quickly due to the fact many business owners taking on the loan need is for a particular reason. Whether it's for equipment, personnel, new marketing budget whatever the reason is, when a business owner decides he/she needs access to capital they typically want to move quickly.
"When business owners are need of capital they typically need it quickly and don't want to go through all the hoops a traditional bank puts you through," states Bentley. "This allows business owners to access cash so they can carry on with their business without having to worry about how they are going to come up with the cash to finance their next project."
The process includes a small one page application and a submission of the last three months of bank statements. If the business owner accepts credit cards, then the last 3 months of the processing statements as well. A credit check will be run to determine the size and type of the loan. This process usually takes just a few hours. Once the approval occurs and the documents are signed the funding goes into place. This as opposed to an SBA style loan that can drag out for weeks, even months.
For small business owners this provides hope when the banks have turned their back on the small business world. The number one reason why business owners fail is due to the lack of access to capital. Private investors like Bentley Capital Ventures are helping small business owners turn the table by providing access to capital based on the businesses strengths. To find out more about how a revenue-based loan can work for businesses you can visit http://bentleycapitalventures.com/business-revenue-lending visit them at https://www.facebook.com/BentleyCapitalVentures or https://plus.google.com/+BentleyCapitalVenturesTampa.