Well the short answer is, yes and no.
In the world of business finance, securing a loan can be tough, especially if you've applied for a loan in the past and have gotten declined. For many business owners, the concept of a "business loan guaranteed approval" would be the greatest thing on this planet. But is this promise too good to be true?
The answer: In the financial industry, genuine guarantees are rare. Lenders need to assess the risk before approving a loan, (that is literally the only concern any lender has) if there was zero risk, there wouldn't be the concept of an application process.
Any lender that offers a guaranteed approval without these assessments is probably a scam.
Alternative Lenders:
Alternative lenders also known as online lenders are extremely flexible when it comes to approvals. Even more so, within the alternative lending industry, which is already very flexible, there are lenders that specialize in approvals. A lender like Crystal Business Funding literally focuses on trying to get you approved.
High-Risk Loans:
Then Obviously like in every industry, there is the high risk sector. Some lenders may basically guarantee approval, but they usually specialize in high risk loans, which obviously means higher interest rates & shorter repayment terms.
A guaranteed approval business loans might be a possibility, here are the type of loans with the most chances of approval:
Merchant Cash Advances:
An MCA is when a lender will give you a business loan, but will base their approvals off of your business's financials rather than your credit score. All that's required are the past 3 months bank statements.
Invoice Financing:
To finance your invoices basically means to sell your invoices to a lender at a cheaper price. Since the loan is secured by your invoices, there is a really good chance for an approval.
Short-term loan:
Short-term loans are loans that are on shorter-terms. These loans are offered by online lenders and are really easy to get approved.
Equipment Financing:
The lender will pay for the equipment and use the equipment itself as collateral. If you want to buy a specific piece of equipment, you can try equipment financing.
Here are 3 steps you can take to improve your chances of getting a business loan:
credit Score:
Improve your credit score, you can get an approval that will monitor your credit score. To maintain a good credit score, make sure to pay your credit card bills on time.
Build Relationships with Lenders:
Building a relationship with a lender is probably the greatest thing you can do on a practical level that will increase your chances of getting approved for loans.
Alternative Lenders:
Banks are not the only option. Online lenders have a more flexible criteria and will be more willing to work with you and get you approved
The concept of a business loan guaranteed approval is enticing but not necessarily does it exist. The financial industry operates on assessing risk, and true promises are rare. However, lenders like Crystal Business Funding will definitely put in the effort to get you approved.