Hand holding handful of dollars coming out of a laptop screen, to illustrate "easy business loans"
Maja Mirosavljevic
By: mmirosavljevic
Read in 10 minutes

The Pros and Cons of Easy Business Loans

Are you one of the small business owners who struggle with business financing?

Do you want to invest in your equipment or employees, but you don’t have the necessary funds for it?

Or your equipment failed, and you need to replace it, but your budget doesn’t cover it?

If so, easy business loans can come in handy to cover all your business finance difficulties.

Now you are probably shaking your head and thinking about the endless visits to the bank, loads of documents, and that exhausting process to get a loan.

But wait! An easy business loan is a completely different thing.

Leave your skepticism behind and keep on reading this article because you’ll discover what an easy business loan is, in plain English (here you won’t find any hard-to-understand financial language). Also, you will directly and honestly learn the pros and cons of this type of business loan. In addition, you’ll grasp the types of easy business loans and which one fits your business best. Finally, you will get an economical solution to access the necessary funds and grow your business.

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Easy business loans explained in plain English

Easy business loans represent a quick and more obtainable type of business borrowing. In other words, a swift and easy loan process which results in higher chances to be qualified for a business loan.

Unlike the loan process at traditional lenders or banks, an easy business loan requires less paperwork.

Advantages and Disadvantages of Easy Business Loans

Pros of easy business loans

  • Flexible criteria for obtaining small business loans. Minimum requirements, such as minimum credit score, minimum business revenue, and business history, without a specific type of collateral. Therefore, you can easily get qualified to access capital.
  • Smooth and straightforward loan application process. Easy online application with a few clicks and feedback within 24 hours. No more loads of paperwork and waiting for months to get a reply.
  • Fast funding in just a couple of days. No more worrying whether you’ll receive payment soon.

Cons of easy business loans

  • High-interest rates. That’s why choose wisely your business lender because not everyone offers the same interest rates.
  • There can be some prepayment penalties or hidden fees.

Worried about high interests? Check these 5 ways to determine if a business loan rate is fair

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How to get an easy business loan: steps

Are you ready to get funding for your business?

Well, easy business loans live up to their name, so getting them it’s quite easy.

1. Application

The application process is pretty straightforward and with detailed instructions. Everything can be done online with just a couple of clicks. This usual loan application includes a questionnaire about the desired loan, your personal details, and business information. So, it’s not like you need a finance expert and tons of documents—you can do everything by yourself in no time and without a hitch.

2. Approval

The next step is approval. Once a business lender receives the application, it will be approved in a couple of days if you are qualified to get an easy business loan. The approval period is very short, but it will give you enough time to plan your activities based on new working capital.

3. Funding

The final step is funding. After your loan application is received and approved, it’s time to obtain your easy business loan. It usually takes 1-3 days to receive your funds.

It seems really fast and accessible, right?

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Types of easy business loans

Now that you know the process, you’re probably thinking getting one of these loans is a great idea. But before you apply, you need more important knowledge.

You need to know what types of easy business loans exist so that you can explore all the options and choose the best possible solution that fits your needs.

Camino Financial Small Business Loans

CF loans are easy to apply for, have fewer requirements when compared to other lenders, and are pretty fast. With monthly payments that are better for business owners.

Loan amount: $5,000 to $400,000

Requirements:

  • 9 months in business
  • $30,000 in annual gross sales
  • if you don’t have an SSN, we accept ITIN
  • we approve the loan even if you have no credit history

We work with a variety of industries, so we perfectly understand the needs of business owners. Our small business loans are a great way to grow your company fast and easily.

Merchant cash advance

This type of loan (also called MCA) is a quick way of short-term financing for small business owners. It’s an advance of your future credit card sales

Loan amount: $2,500 to $250,000

Requirements:

  • good credit card sales
  • credit score above 400 (although they usually approve people with bad or no credit history)
  • 5 months of business history
  • $50,000 in annual revenue

It is convenient for businesses with a lot of credit card transactions (retail, restaurant, and service companies).

The problem with MCAs is that their annual percentage rate is extremely high compared to other options, it can go from 40% to 150% and sometimes even up to 400%.

Learn more about MCAs

Short-term loan

This is another swift way to ensure necessary business capital.

Loan amount: $5,000 to $100,000

Requirements:

  • credit score of 550 or above
  • 1 year of business history
  • $100,000 in revenue.

Their downside is their payment frequency: you need to pay on a daily or weekly basis.

Line of credit

The kind of works like a credit card, where the lender approves a loan limit and you can spend only as much as you need whenever you need it.

Loan amount: $10,000 to $100,000

Requirements:

  • credit score of 680
  • might require collateral
  • 2 years in business

It is convenient for companies with net payment terms. But you won’t get approved if your account receivables are not good enough.

Invoice funding

Loan amount: 80% to 90% of your unpaid invoices, up to $1 million

This is a convenient way to handle overdue invoice payments and get funds in a form of a percentage of the invoice. You sell a percentage of your invoice to the lender n exchange for that same amount (plus fees). Then, when your client pays, the lender gets it’s part.

Requirements:

  • Have unpaid invoices
  • 3 months of business history
  • $50,000 in annual revenue

The lender will take a look at your unpaid invoices and decide how much to lend you depending on that.

Important terms

If you are considering getting a small business loan, it would be good to get familiar with some terms you’ll encounter. That way, you’ll be more prepared and the whole process will go smoothly.

Term Definition
Loan amount The amount of money the borrower is obliged to repay to the lender.
Time to repay A period of time necessary to pay back the whole loan.
Payment frequency The rate at which you repay a certain amount of the loan over a particular period of time. It is usually daily, weekly, or monthly.
Interest rates The cost of borrowing money from the lender expressed in a percentage of the principal loan amount. It varies from lender to lender.
Requirements Qualifications you need to have in order to obtain a business loan. They are based on your personal credit score, how long your business operates, and monthly or annual revenue.
Time to get funded The period of time needed to receive funds after signing the small business loan agreement.

Don’t get intimidated by all the terms and options. The right business lender who cares about your business will carefully consider all your possibilities and find the solution that suits you best.

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The best deal on easy business loans

Speaking of the right business lender, Camino Financial offers the best available rates and terms when it comes to easy business loans. There’s even more:

  1. Reasonable interest rates make Camino Financial the most affordable solution in the market for this category.
  2. Monthly payments instead of daily or weekly payments.
  3. Longer time to repay your business loan. From 24 to 60 months.
  4. Builds your business credit
  5. You can graduate to a new loan with more capital and fewer interest rates
  6. Free benefits, like business consultations, and workshops

Hence, spend your time and effort building a relationship with a reputable lender like Camino Financial which offers you all the advantages and the convenience of easy business loans.

Apply for a business loan online and make the path for your business growth.

 

 

 

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