3 Companies That Are Transforming Small Business Lending

It’s no secret that it has become harder and harder to get a small business loan from a bank. Luckily for small businesses, many other ways of borrowing money are now available. These range from short-term loans for those with bad credit, to loans for online businesses, to peer2peer loans. The coolest thing about these new types of lenders is not simply the loan products they provide, but also the technology that they use to make lending more efficient.

Here are three companies that are transforming the small business loan industry. They just might help you get a loan for your small business when you feel like you’ve exhausted all your options.

DISCLOSURE: The website which I serve as publisher, Fit Small Business, has business relationships with all three companies mentioned in the article.

1. SmartBiz – Smarter SBA Loans

SmartBiz is speeding up and simplifying the once and still often painful SBA loan process. SBA loans are business loans that are issued by banks but partially backed by the US Small Business Administration (SBA). These loans are very attractive for small businesses because they carry longer terms and lower interest rates than most other loan sources.

The catch is that the SBA loan process traditionally takes 4-6 weeks, and many business owners don’t have the luxury of waiting that long for capital. After submitting initial paperwork to the bank, it can 1-2 weeks just to get pre-approved for an SBA loan! After that, the underwriting process can take another 2 weeks, followed by 1-2 more weeks for closing the loan.

SmartBiz, located in San Francisco, has shortened the total time for funding an SBA loan under $150,000 to as little as 1 week. You can upload all paperwork electronically in the online application, or send it via email. SmartBiz has an algorithm that will quickly evaluate your creditworthiness based on your electronically submitted paperwork. You can be pre-approved within 30 minutes (yes, minutes!) of applying online, and the funds can be in your bank account in as few as 7 days. This streamlined processed is only available for loans under $150,000; larger loans take the customary 4-6 weeks. But this is an excellent way for businesses with good credit to get SBA loans if they’ve been holding off from applying because the process seemed too long or complicated.

Read the full article here.