While final approval requirements can vary from funding program to funding program and lender to lender, there are some general guidelines that will increase your client‘s likelihood of getting approved. Those are:
Must be a for-profit business entity in good standing.
None of the business owners are felons or on parole.
Business must be physically based in the United States.
Not delinquent on any existing debts (taxes, loans, cards).
20%+ owners with good credit score preferably above 680.
No history of recent bankruptcies, foreclosures, or tax liens.
Having comparable debt history (want $50k, already had $50k).
Showing cash flow to meet the debt obligations (Bank Rating).
Business Credit Cards. Provides your clients with a combination of business and personal credit cards where the funding can typically range from $25,000 to $150,000 with 0% interest rate initial periods.
Business Lending Credit Unions. Personal unsecured signature loans from $10,000 to $75,000. These are installment loans with a fixed rate and term where the funds can be available for use within 48 hours.
SBA Loans. The SBA does not make loans but rather guarantees a repayment of a percentage of the loan in the event of default. These loans typically range from $10,000 to $5 million.
Private Lender Credit Lines. These are credit lines provided by non-bank lenders who are private companies that may take higher risks than banks or SBA programs are willing to take. These loans can range from $10,000 to $500,000
Peer to Peer Business Lending. Private individuals investing their money into specific loan requests. Can be a great alternative for businesses who have a good story to tell that will excite these individuals to take a risk on their loan.
Private Bridge Financing. Bridge financing is normally niche specific short-term loans. They bridge the gap between one loan and another. For example, if you already have a take-out loan in place once a project is completed but your client needs the funds to complete the project.