How Do Small Business Loans Work?

Small business loans are important for a company’s growth. Most small businesses lack the long money that larger corporations possess. When various expenses come up, small business loans are an important resource. If you need new merchandise, a new facility, or anything in between, a small business loan can help entrepreneurs. The concept of a business loan may be confusing. It is not as simple as the money in your wallet and it’s certainly different than taking on an investing partner. How do small business loans work? They are actually quite simple to understand. Silver Rock Funding works with trusted lenders to provide small businesses with the funding they need.

small business loans
Many times a small business loans require that the borrower provide security to receive a loan. (Photo: Wisebread)

Approval

The first step is realizing that you need a business loan. Perhaps, you need to purchase or lease new equipment for your construction company. You may need to return to school to provide additional services at your dental office. A business loan provides funding for anything you need. So, once you realize that you need funding, you have to find a lender. Big banks have become hesitant in their approval. Often they deny funding to “unfavorable groups”, including those with bad credit. Even when funding is provided, many entrepreneurs wait between 30-60 days for approval and money. When a small business is facing an urgent matter, a long wait is not acceptable. That is why alternative lenders have become more reliable. Alternative lenders, such as those at Silver Rock Funding, approve businesses quickly. Money is available in your account within 72 hours.

Paying Back

Once you receive funds, you are free to use them as you please. However, like any loan, you have to pay back the funds from your loan to your lender. Prior to accepting your the money, you would have decided on specific loan terms. Those terms include set payments and a pre-determined length of time to pay it back. When you are provided a loan by Silver Rock Funding, you are assigned a hands-on funding manager. They work directly with you to find a funding option that fits your needs. When it is time to pay back, there is no headache when making payments. One option allows payments to be directly withdrawn from your bank account. Another, more popular, option allows the lender to take a small portion of your daily credit card receipts.

Business Loan Breakdown

Business loans work just like other loan options. Many times a small business loans require that the borrower provide security to receive a loan. Silver Rock Funding considers assets, such as real estate or merchandise for some funding options. Other times, funds are provided based on your income. If your business has at least $8,000 in credit card receipts monthly, you can receive funding based on your earnings. Silver Rock Funding has connected small businesses with over $6 million in funding. Entrepreneurs can complete an application online and be approved in 24 hours. Small business loans from Silver Rock Funding may be a good fit for your company.

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