1) Traditional Banks Always Require Collateral: Business Financial Consulting Small Business Loans require no collateral. Collateral or physical property is required by traditional banks as collateral to guarantee the business loans in case it's not repaid. It's hard for recently new small businesses that do not count with collateral in real estate or valuable equipment to receive an approval on a small business loan. You should never turn to collateralizing your personal assets such as family home, personal auto, as business loan collateral. The amount a traditional bank is willing to lend depends on the value of your assets, therefore, unless you are ready to use your personal home as collateral, ask us about our no-collateral small business loans!

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2) Low Or No Credit : The major credit bureaus score that are used for small business loan approvals will always vary. Some small business are too new to even have any credit, this is one of the main reasons for decline within traditional banks. Leaving over 85% of small business loan applicants back at square one. Don't waste 2-4 years waiting on an approval that might never come, start your business goals today with Business Financial Consulting. BFC is known for helping business owners with challenged credit receive 2nd chances that have led to amazing success stories. In some cases, the merchant might not receive the most desirable offer due to having negative payment history with other commercial financing institutions, however, BFC is still willing to lend a hand to all hard working business owners who require business financing to grow their business. We know times can get tough, which is why we are able to approve small business with little or no credit at the most affordable & competitive financing terms, that's right. Traditional banks will measure your success on your assets, not on your vision, work with a financial institution is willing to help your business achieve all of your short & long term goals. If you are new in business or need to re-establish your credit with a reliable business financing source, apply for our financial services today!

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3) Lower Profit Margins For Smaller Loans : For most cases, small business loan requests make up 80% of business loan applications, however the approval amount is under $500,000. Such low business loan applications would be perfect if you were to apply with Business Financial Consulting, but it doesn't really benefit traditional banks to fund these small loans. The reason lies within a big retailer flaw of not being able to provide customized business solutions to different types of businesses. Also, for traditional banks, underwriting a small business loan for $15,000 dollars has the same operational costs as underwriting a business loan for $250,000 dollars. Therefore, it's to expensive to underwrite small business loans for traditional banks, this leaves a great number of small business owners without any reliable financing options. Our BFC Commercial equipment financing & leasing solutions start at $7,000 and do not require excessive documentation, this has helped thousands of small business owners grow their business, at their pace. BFC will always be small enough to care and large enough to get the job done. 

4) Weak Cash Flow : Aside from perfect credit, and established business clientele, traditional banks are very worried that small businesses will not have enough positive cash flow activity to cover their monthly payment. As a small business owner, you have to cover payroll, inventory, business rent, and such. The majority of small business struggle to keep enough money in their bank accounts, despite being profitable. If there are too many swings within cash flow balances & deposits, banks will flag your business as volatile within positive cash flows. Cash flow will be determined by your personal and business tax returns, profit and loss statements, balance sheet, debt amortization schedule, among many other financial stipulations for our SBA 7a Loans and monthly payment financing products. 

5) Increased Regulation : The 2008 recession, led to never before seen regulation on all banks, as well as limitations within credit availability, this led to a much slower economic recovery. Traditional banks will provide small business loans with money that is in their possession, but is not necessarily theirs. Therefore, small business owners represent too high of a risk to lend money to. Since the majority of businesses are small businesses, traditional banks will more than likely have more than 1 reason to decline your application. We are able to look past the red tape, and analyze your unique financial scenario for a compatible offer. Our commercial equipment loans and commercial business loans remain up to this day the most affordable and competitive for small business owners that are unable to receive financing from their local bank.

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6) Lack Of Satisfying Documentation : The majority of business could have great success, great cash flow levels, even decent credit, however most banks will require full financial disclosure during the last 3 years. This means, that if anything in those 3 years does not match or follow an improving trend of debt/income ratio, income/asset expenditure ratio, asset liquidity ratio's, among many other required percentages, the application will be declined. The customers credit score is not the only requirements for an approval on a small business loan or equipment loan, the content and story of the applicant is taken into consideration as well. Business Financial Consulting requires little to no financial disclosure when it comes to our commercial equipment loan, small business loan, commercial factoring, or merchant services. Contact us prior to starting your business financing application to gather all required documentation.