Convert a business idea into a profitable reality; avoid losing a client, take advantage of cheap suppliers or save a business from failing. If you have a business expense that needs to be settled immediately, emergency business loans can be your best financing option. You can acquire the funds in a matter of days and you don’t even need a perfect personal credit score to obtain one.

However, banks have tightened their lending criteria and you may run out of time before you receive the proceeds of the loan. They implement strict principles and other procedures which can make your application a very tedious process.

Are There Better Alternatives?

Your personal credit score will not be affected by your business loans. Nonetheless, you still need to submit your personal credit rating. You also need to prove your revenue for a year or two, and banks often require financial history or account records to assess the capacity of the business to handle its financial obligations.

An emergency business loan may come with a higher interest rate and fees for borrowers with no proof of income and poor credit ratings. When this happens, it is advised to search for other options that would help you establish or maintain your business especially when there is an urgent need for funds.

Here are two alternatives:

Line of Credit

If you have a business account with a bank, but do not qualify for its traditional business loan, you can apply for a line of credit instead. However, you cannot expect a quick turnaround, because it may take weeks before it gets approved. Yet, it can still be a very useful resource for future business emergencies.

Specialised Lenders

Specialised lenders like Australian Lending Centre cater to businesses that do not qualify for traditional business loans. ALC understands that the business needs to go on as usual despite its financial drawbacks.

If you want your business to keep operating, you need the right funding to pull you out of problematic financial situations. There are also some management decisions that require immediate cash to sustain growth and avoid serious fallbacks.

What are the things to keep in mind when applying for emergency business loans?

First, determine the business’s needs and the amount you need to meet it.

It is important to have a clear idea of what you really need before you sign the loan application form. It is very easy to lose track of what you intended to do from the start if you don’t have a clear understanding of your needs. Remember that the amount must not be greatly higher than your actual needs. When you are running a business, it is important to remember that the costs must be lower than the profit. Otherwise, you will end up spending more than what you actually earned and your business will suffer.

Review your credit history

Have you missed or been late on some of your previous debt repayments? If so, why did it happen? Before you apply for an additional loan, make sure that you have a good budget in place to avoid repeating the same mistake.

While a specialised lender may still approve your loan application despite the negative credit history, reviewing your credit file may help you find errors and negative entries that you can correct. You many find accounts that don’t belong to you, or inaccurately reported repayments on your file. So, before you send your business loan application, make sure that your credit file is accurate and up to date.

Study your financing options

Specialised lenders may offer better terms than traditional banks, especially if you don’t have a stellar credit rating. Review the company and its loan products, and compare them with other financing institutes. Check if the financing procedures are safe and secure, and if you will be able to save more money in the process. It is also important to talk with the loan officer and ask about the details of the loan, including its comprehensive terms and conditions.

Always consider your business plan when applying for a loan – make sure that the amount you borrow and the financing agreement will support your plans. Use every cent you get to support your goals and to build a solid credit history so that you can quickly access business loans with better rates in the near future.

Emergency business loans from specialised lenders are usually approved within 24 hours or a week – so it is advised to create a budget before you send in your loan application. Not only will it ensure that you will use the money exactly as you planned, but it will also keep you from defaulting on your loan repayments.

Contact Australian Lending Centre today to learn more about an emergency business loan and how you can use it to meet your business’ financial needs.