You’re at the helm of an energetic startup, and there is no limit to the opportunities for growth. You could be opening branches nationwide, worldwide, adding associates, onboarding employees, and maybe most gloriously of all, being featured in Forbes. You might also get requests to be a guest lecturer for MBA students by next year.

At the same time, you understand it’ll take a massive amount of hard work, clear communication, vision, excellent timing,  a dash of luck, and indeed working capital.

How Not To Get a Working Capital Loan?

Before outlining ways to obtain a working capital loan, it is essential to note how not to move forward by applying at your bank

It is the usual practice for startup entrepreneurs to apply for working capital loans from their respective banks based on the marketing and advertising hype of banks. However, banks extend a cold shoulder rather than a hearty handshake to applicants. There are specific reasons for this rejection;

  1. The lack of adequate collateral to secure the loan.
  2. Mediocre personal credit.
  3. Insufficiently credit history – or no credit history at all.
  4. Not having a robust bank-approved business plan.

The Back Story

The reason banks are so anti-startup? It’s like this: small business loans are generally in the $ 50,000-$ 100,000 range, but for a more substantial business they can easily exceed $2 million. Nevertheless, the exercise that banks put into underwriting the loan is virtually the same. The fact is, for small companies, administering a loan might be much more labor-intensive, because papers may have to be re-submitted, and there may be more consulting required.

Banks are also  risk adverse since the great recession in 2008 and they find it more lucrative to serve the financing needs of large, proven businesses. That leaves new venture owners like you on the outside looking in.

Getting the Working Capital Loan Your Startup Needs

Not having what the banks require to obtain a loan or someone to fund your ideas should not put your startup on hold. Preferably, you can get the working capital loan you need from ViewRidge Funding!

As opposed to banks, we do not demand perfect or good credit, and 2-3 months of credit history is usually excellent. What’s more, we do not require collateral, and you can use your loan proceeds for any purpose ( or purposes ) that you wish. You can even pay your loan back early, but there will never be any commitment to do so. And if you require guidance or advice, your dedicated Funding Specialist is just a call or email away.