According to the monthly analysis by the Biz2Credit Small Business Lending Index™, rates for loan approval at big banks picked up where they stopped in 2016. This resulted in improved post-recession highs in January 2017. Rates for loan approval at small banks and institutional investors didn’t prove to be weak.
Alternative lenders also saw an increase in their loan approval rates. If you’re interested in applying for business funding, consider turning to a reputable alternative lender like First American Merchant. FAM offers the best business funding opportunities in the industry and is a reliable payment processor that specializes in the high risk sector.
In January, big banks granted 24% of funding requests as opposed to the summer of 2011 when less than 10% of loan applications were approved. Regional and community banks are currently approving about 48.9% of their requests. When it comes to institutional lenders, this number is 63.4%. Being in the quest for high yields, international players are also interested in the small business lending market in the US.
Small business owners looking for expansion or upgrades should take the following steps:
Don’t Be Slow
As compared to 2016, interest rates didn’t go too much higher, and maybe you won’t see them as low again. If 2015 was great for you, and you had a slower 2016, don’t hesitate to apply before April 15, IRS filing date. By applying before April 15, you’ll be able to submit financials showing the strongest year to be the last year for which you filed returns, that is 2015. If you wait until May or June, you’ll have to submit financials for 2016.
Prepare All the Necessary Paperwork
File the necessary documents. Make sure not to miss the deadline, otherwise, your company will be considered inactive. As a result, the loan process will be delayed.
Don’t File Your Taxes Late
Don’t forget that while you can ask for an extension on filing, you must pay the taxes owed on April 15. Being late will result in interest charges and late fees. In case the number is large enough, your company will be imposed a tax lien by Uncle Sam.
Modern market realities enable lenders to modernize and make the process quicker. You, as a borrower, should have a sense of urgency as well. Don’t be slow. Take advantage of the economic situation and low interest rates.