Have you been offered a preapproved business loan? Many banks and other lenders offer them to their clients. Like all loans, preapproved business loans involve borrowing money. You’ll have to repay the bank or lender from which you borrowed the money. Preapproved business loans, however, are typically faster and easier to obtain than many other types of business loans.
What Is Preapproved Business Loan?
A preapproved business loan is a type of business loan for which a prospective borrower has been qualified. When you apply for a business loan, the lender will review your information to determine whether to accept or reject your application. With a preapproved business loan, the lender has essentially already determined that you qualify for a loan.
Benefits of a Preapproved Business Loan
You�ll still have to apply for most preapproved business loans. But you can rest assured knowing that the lender will approve your application. Preapproval means that the lender has already determined that you are a suitable candidate. The interest rates and other terms of the loan may vary depending on your information, but you won�t be turned down for a preapproved business loan.
If time is of the essence, you may want to consider a preapproved business loan. They are faster to obtain than business loans that don�t involve a preapproval. If the lender has qualified you for a business loan, you won�t have to wait a long time to get approved. The lender has already qualified you, so you just have to wait for the lender to review your application.
Other Financing Solutions
Rather than a preapproved business loan � or any other type of loan � you may want to consider equity financing. Equity financing involves the sale of equity to an investor. Equity is ownership. Your business�s equity is likely represented by stock shares. Even if your business is privately traded, you can sell some of its stock shares to an investor.
There are venture capitalists who invest in early stage businesses. If your business has strong growth potential, you may be able secure equity financing from a venture capitalist. The venture capitalist will essentially buy an ownership stake in your business. With equity financing, you won�t have to borrow money. Debt financing like preapproved business loans involves borrowing money, whereas equity financing involves the sale of equity to an investor.
This article was brought to you by Intrepid Private Capital�Group�� A Global Financial Services Company. For more information on startup and business funding, or to complete a funding application, please visit our�website.