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DUNS Number Gets Replaced By Unique Entity Identifier (UEI)

February 11, 2023Blog, Resources, Running a Business, Starting a Business0 comment

The federal government has introduced a new unique entity identifier known as the Unique Entity ID, which has replaced the D-U-N-S Number. This change has implications for small businesses, and it’s important to understand what actions need to be taken in response.

A Unique Entity Identifier (UEI) is a new identifier that has been introduced by the federal government to replace the D-U-N-S number. UEI is a unique identifier assigned to organizations, entities, and individuals who are eligible to receive federal financial assistance, including grants and contracts. The UEI is used by the federal government to track and manage financial assistance and to reduce the risk of waste, fraud, and abuse in the federal assistance program.

What is a Unique Entity Identifier (UEI)?

Unique Entity Identifier (UEI) is generated and maintained by the System for Award Management (SAM), which is the official U.S. government system for consolidated award management information. SAM is used by the federal government to manage the procurement process and to maintain accurate and up-to-date information about organizations that receive federal financial assistance.

Small businesses that wish to receive federal financial assistance may need to obtain a UEI in order to participate in the procurement process. Obtaining a UEI typically involves providing basic information about the business, such as its legal name, physical address, and taxpayer identification number.

If your business or nonprofit is already listed in the System for Award Management (SAM) database, either as an active or inactive entity, you already have a Unique Entity Identifier (UEI). You can locate it on the SAM.gov website.

If your business or nonprofit has not yet registered with SAM.gov, you will receive a UEI as part of the registration process. Registration on the SAM.gov website is free of charge.

Is the Unique Entity Identifier the Same as DUNS?

No, the Unique Entity Identifier (UEI) is not the same as the D-U-N-S (Data Universal Numbering System) number. The UEI is a new identifier that has been introduced by the federal government to replace the D-U-N-S number for organizations and entities that receive federal financial assistance, including grants and contracts.

The D-U-N-S number, on the other hand, is a unique nine-digit identifier assigned by Dun & Bradstreet (D&B), a leading global provider of business information and data analytics. The D-U-N-S number is widely used as a standard identifier for businesses, especially in the United States, for purposes such as credit reporting, loan applications, and government contract bidding.

In summary, the UEI and D-U-N-S number serve different purposes and are assigned by different entities. However, businesses that receive federal financial assistance may need to obtain both a UEI and a D-U-N-S number.

How Do I Find My UEI Number?

You can find your Unique Entity Identifier (UEI) number by following these steps:

Go to the System for Award Management (SAM) website: Visit the SAM.gov website at https://www.sam.gov/.
Log in to your account: If you have already registered your business or nonprofit with SAM.gov, log in to your account using your username and password.
Access your entity information: Once you have logged in, go to the “My SAM” section and click on the “Entity” tab to access your entity information.
Find your UEI number: Your UEI number should be listed on the “Entity” page, along with other information about your business or nonprofit.

If you have not yet registered with SAM.gov, you will receive a UEI number as part of the registration process. The UEI number is assigned automatically by SAM.gov when you complete the registration process and provide the required information about your business or nonprofit.

It’s important to note that the UEI number is a critical component of the federal government’s procurement process, and businesses and nonprofits that receive federal financial assistance will need to provide their UEI number in order to participate in procurement opportunities and receive funding.

How Do I Get A UEI Number?

You can get a Unique Entity Identifier (UEI) number by registering with the System for Award Management (SAM) website. The steps to register for a UEI number are as follows:

Go to the SAM.gov website: Visit the SAM.gov website at https://www.sam.gov/.
Click on the “Register” button: On the SAM.gov homepage, click on the “Register” button to start the registration process.
Complete the registration form: You will be asked to provide information about your business or nonprofit, such as its legal name, physical address, taxpayer identification number, and other relevant details.
Validate your email address: After completing the registration form, you will receive an email with instructions on how to validate your email address. Follow the instructions to complete this step.
Review and submit the registration form: After validating your email address, you will be able to review your registration form and submit it.
Wait for confirmation: After submitting the registration form, you will receive an email confirmation that your registration has been received and is being processed.
Receive your UEI number: After your registration has been processed, you will receive an email with your UEI number and other important information about your entity’s registration with SAM.gov.

It’s important to note that registering with SAM.gov is free of charge, and having a UEI number is a critical component of the federal government’s procurement process. Businesses and nonprofits that receive federal financial assistance will need to provide their UEI number in order to participate in procurement opportunities and receive funding.

Does My Business Need a UEI?

According to the US General Services Administration, the DUNS number is no longer present in searches, views, or extracts in SAM.gov. This doesn’t mean that your business no longer has a DUNS number, just that it is no longer used within the federal government’s Integrated Award Environment (IAE), which manages several systems including SAM.gov, FPDS, eSRS, FSRS, CPARS and FAPIIS.

Whether your business needs a Unique Entity Identifier (UEI) depends on whether it receives federal financial assistance, including grants and contracts, from the United States government.

If your business is registered in the System for Award Management (SAM) and participates in procurement opportunities or receives federal funding, it is required to have a UEI. The UEI is used by the federal government to identify entities and track the distribution of federal funds.

If your business does not receive federal financial assistance, it is not required to have a UEI. However, obtaining a UEI number through SAM.gov registration can be a useful tool for tracking your business’s interactions with the federal government and streamlining your participation in procurement opportunities.

In summary, while having a UEI number is not a requirement for all businesses, it is mandatory for businesses that receive federal financial assistance and can be beneficial for businesses that interact with the federal government in other ways.

Does My Business Still Need a DUNS Number?

The DUNS (Data Universal Numbering System) number is no longer a requirement for businesses that receive federal financial assistance, as it has been replaced by the Unique Entity Identifier (UEI) as the primary identifier for entities in the System for Award Management (SAM).

If your business is already registered in SAM.gov and has a DUNS number, it will still be recognized as a valid identifier, but the UEI is now the preferred identifier for entities in SAM.

If your business does not receive federal financial assistance and does not interact with the federal government, it may not need either a DUNS number or a UEI. However, it is advisable for small businesses to obtain a DUNS number, as it serves as an identifier in the Dun & Bradstreet commercial credit reporting system. If your business does not have one, you can easily request a DUNS number, which stands for Data Universal Numbering System, for free.

In conclusion, if your business is interested in participating in procurement opportunities or receiving federal funding, it will need to obtain a UEI by registering in SAM.gov and while the DUNS number is still recognized as a valid identifier, the UEI is now the preferred identifier for entities in SAM, and is mandatory for businesses that receive federal financial assistance.

Frequently Asked Questions

Where Can I Get Help with My UEI or SAM.gov?

If you need assistance with your Unique Entity Identifier (UEI), or SAM.gov, you can first check the FAQs on SAM.gov related to the UEI transition. If you are still unable to resolve your issue, you can seek help from the Federal Service Desk (FSD.gov) website or reach out to an FSD agent for support during their business hours of 8 AM to 8 PM Eastern Time, Monday through Friday.

Will the government reach out to me through a phone call or email regarding my Unique Entity Identifier (UEI)?

It is unlikely that the government will contact you via phone or email specifically about your Unique Entity Identifier (UEI). The responsibility of obtaining and maintaining a UEI falls on the entity, and any updates or changes to the UEI should be made through the SAM.gov portal. If you have any questions or concerns about your UEI, it is best to reach out to the Federal Service Desk (FSD.gov) for assistance.

Beware of unsolicited calls or emails regarding your Unique Entity Identifier (UEI). Do not disclose personal or business information to these individuals. Instead, log into your SAM.gov account to manage your registration and ensure that your UEI is up to date.

How Do I Update My Business Information?

It is now possible to update the legal name or physical address of your business through SAM.gov, rather than having to go to Dun & Bradstreet as was previously necessary.

Will My UEI Expire?

Your Unique Entity Identifier (UEI) does not have an expiration date. However, it is important to keep your UEI up-to-date by regularly updating any changes to your business information in SAM.gov. This will help to ensure that the information associated with your UEI remains accurate and up-to-date.

Is There a Cost to Get A Unique Entity Identifier (UEI)?

No, there is no cost to obtain a Unique Entity Identifier (UEI). The registration process for a UEI is free and can be completed through SAM.gov. The government uses UEIs to keep track of businesses and organizations registered in the System for Award Management (SAM) database. Obtaining a UEI is a simple process that can be done online, and it helps to ensure that your business information is accurate and up-to-date.

Best Places Where You Can Check Your Credit Score For Free.

February 8, 2023Blog0 comment

There’s no need to avoid checking your credit score because of cost, as there are over 130 websites, banks, and credit unions that provide your credit score for free. Some of these sources offer credit scores to the general public, while others limit the service to their customers. With so many options available, there’s no excuse for not knowing where your credit stands.

Annual Credit Report	NerdWallet	Experian Freecreditscore.com
WalletHub	Mint	CreditKarma
Core Credit™by Equifax	Credit Sesame	LendingTree

Credit Unions Providing FICO

1st United Credit Union	General Electric Credit Union	NSWC Federal Credit Union
Affinity Federal Credit Union	Healthcare Systems Federal Credit Union	PenFed Credit Union
America First Credit Union	Harvard University Employees Credit Union	Polish & Slavic Federal Credit Union
American Heritage Credit Union	Interra Credit Union	Premier America Credit Union
Baxter Credit Union (BCU)	Keypoint Credit Union	PSECU
Chevron Federal Credit Union	Langley Federal Credit Union	USF Federal Credit Union
Community Credit Union Florida	Listerhill Credit Union	Robins Financial Credit Union
Digital Federal Credit Union	Los Angeles Police Credit Union	Sharonview Federal Credit Union
DuPont Community Credit Union	Mass Mutual Federal Credit Union	Signal Financial Federal Credit Union
Elements Financial	Michigan State University Federal Credit Union	SkyPoint Federal Credit Union
Fairfax County Federal Credit Union	Mill City Credit Union	Stanford Federal Credit Union
Farmer’s Insurance Federal Credit Union	Mountain America Credit Union	Star One Credit Union
Firefighters First Credit Union	Mutual Security Credit Union	State Employees’ Credit Union
Franklin Mint Federal Credit Union	NASA Federal Credit Union	TrueCore Federal Credit Union
Fortera Credit Union	NatCo Credit Union	TruMark Financial
Forum Credit Union	Navy Federal Credit Union	Whatcom Educational Credit Union
Freedom Credit Union	Northrop Grumman Federal Credit Union

Get Free Credit Score From Your FICO Score Union

Credit Unions Providing VantageScore

Advantage One Federal Credit Union	Credit Union Advantage (CU Advantage)	Space City Credit Union
American Airlines Credit Union	Dupaco Community Credit Union	Spokane Teachers Credit Union
Anoka Hennepin Credit Union	Houston Metropolitan Federal Credit Union	State Department Federal Credit Union
Capstone Federal Credit Union	Kemba Indianapolis Credit Union	Susquehanna Valley Federal Credit Union
Caro Federal Credit Union	Midcoast Federal Credit Union	T&I Credit Union
CODE Credit Union	One Community Federal Credit Union	Target Corporation Credit Union
Community Service Credit Union	Oswego County Federal Credit Union	Technology Credit Union
Complex Community Federal Credit Union	Oswego County Federal Credit Union	Town and Country Federal Credit Union
Conservation Employees Credit Union	PCM Credit Union	Tulsa Federal Credit Union
Credit Union 1	Sea West Coast Guard Federal Credit Union

VantageScore

How Student Loan Debt Relief Could Impact Small Businesses

December 31, 2022Blog0 comment

Student loan debt relief could potentially have a number of effects on small businesses, both positive and negative. Here are a few potential ways that student loan debt relief could impact small businesses:

Increased consumer spending: If individuals with student loan debt receive debt relief, they may have more disposable income to spend on goods and services. This could lead to an increase in consumer spending, which could be beneficial for small businesses.
Increased employee retention: Some employees may leave their jobs to pursue higher paying opportunities or to attend school full-time. However, if student loan debt is relieved, employees may be more likely to stay in their current positions or return to work after completing their education. This could lead to increased employee retention for small businesses.
Increased access to credit: If individuals with student loan debt are able to pay off their loans or have them forgiven, they may have a better credit score and be more likely to qualify for loans or credit cards. This could make it easier for small businesses to access credit to fund their operations.
Increased competition for employees: If student loan debt relief leads to an increase in the number of qualified job candidates, small businesses may face more competition for top talent. This could lead to higher wage costs for small businesses as they try to attract and retain employees.

Overall, the impact of student loan debt relief on small businesses will depend on a variety of factors, including the specific terms of the relief program and the overall state of the economy.

Who Will Benefit from Debt Relief?

Debt relief programs are designed to help individuals or businesses that are struggling to pay off their debts. The specific groups that will benefit from debt relief will depend on the specific terms of the relief program.

For example, a debt relief program that is targeted at individuals with high levels of student loan debt is likely to benefit those individuals the most. Similarly, a debt relief program that is designed to help small businesses struggling to pay off loans during a recession may benefit those businesses the most.

In general, individuals or businesses that are facing financial hardship due to high levels of debt may benefit from debt relief programs. These programs can provide relief by reducing the total amount of debt owed, extending the repayment period, or by forgiving the debt entirely.

It is important to note that not all debt relief programs are created equal, and some may have eligibility requirements or exclusions that limit who can benefit from the program. It is always a good idea to carefully review the terms of any debt relief program before participating.

Criticisms and Challenges to the Student Loan Forgiveness Plan

There are several criticisms and challenges associated with student loan forgiveness plans. Here are a few examples:

Cost: One of the main criticisms of student loan forgiveness plans is that they can be very expensive. Forgiving large amounts of student loan debt can be a significant financial burden for the government or other organizations that are providing the relief.
Fairness: Some critics argue that student loan forgiveness plans are not fair, as they often disproportionately benefit higher income earners who are more likely to have larger student loan balances. Others argue that these plans unfairly penalize individuals who have already paid off their student loans.
Ineffectiveness: Some critics argue that student loan forgiveness plans do not effectively address the root causes of student loan debt, such as the high cost of education. Instead, these plans may simply provide temporary relief to borrowers without addressing the underlying issues.
Complexity: Student loan forgiveness plans can be complex and may have a number of eligibility requirements and exclusions. This can make it difficult for borrowers to understand and navigate the process, which can be a challenge for those who are already struggling with debt.
Limited availability: Student loan forgiveness plans are often limited in availability, with only certain types of borrowers or loans qualifying for relief. This can leave many borrowers without access to these programs.

What Can Businesses Do to Prepare?

There are a few steps that businesses can take to prepare for the potential impact of student loan debt relief:

Review your workforce: Consider the number of employees in your company who may be impacted by student loan debt relief. This can help you understand the potential impact on your business and allow you to plan accordingly.
Monitor changes in the law: Stay up to date on any changes to student loan debt relief laws or programs that may affect your business. This can help you understand the potential impact and allow you to plan accordingly.
Communicate with employees: If you have employees who may be impacted by student loan debt relief, consider communicating with them about any potential changes and how they may affect their financial situation. This can help build trust and understanding within your organization.
Review your budget: If you expect student loan debt relief to have a significant impact on your business, consider reviewing your budget to ensure that you have the resources to handle any potential changes.
Seek professional advice: If you have questions or concerns about how student loan debt relief may impact your business, consider seeking the advice of a financial professional or attorney. They can provide guidance and help you develop a plan to manage any potential changes.

Where Small Businesses Can Access Immediate Working Capital?

There are several options available to small businesses seeking immediate working capital:

Small business loans: Small businesses can apply for a loan from a bank or other financial institution to obtain immediate working capital. There are several types of small business loans available, including term loans, lines of credit, and short-term loans.
Credit cards: Small businesses can use credit cards to access immediate working capital. This can be a quick and easy option, but it is important to keep in mind that credit cards typically have higher interest rates than loans and can be more expensive in the long run.
Invoice factoring: Small businesses can sell their outstanding invoices to a factoring company in exchange for immediate working capital. The factor will advance a portion of the invoice amount upfront, and the small business will receive the remainder, minus a fee, once the invoice is paid.
Short-term business loans: Some online lenders and alternative finance companies offer short-term business loans that can provide small businesses with immediate working capital. These loans are typically easier to qualify for than traditional bank loans, but they may have higher interest rates and fees.
Crowdfunding: Small businesses can use crowdfunding platforms to raise immediate working capital from a large group of people. This can be a good option for businesses that have a strong online presence and a compelling pitch.

FAQs on Student Loan Relief & Impact On Small Businesses

How does student loan relief impact small businesses?

Student loan relief could potentially have a number of effects on small businesses, both positive and negative. For example, it could increase consumer spending, improve employee retention, and increase access to credit. However, it could also lead to increased competition for employees and higher wage cost

Can small businesses access student loan relief programs?

It is generally individuals, rather than businesses, that are eligible for student loan relief programs. However, small businesses may be able to access certain types of financing, such as SBA loans, that could be used to pay off student loans.

What can small businesses do to prepare for the potential impact of student loan relief?

Small businesses can take a number of steps to prepare for the potential impact of student loan relief, including reviewing their workforce, monitoring changes in the law, communicating with employees, reviewing their budget, and seeking professional advice.

How do small businesses qualify for student loan forgiveness?

Small businesses do not typically qualify for student loan forgiveness programs. These programs are generally available to individuals who are struggling to pay off their student loans. However, small businesses may be able to access certain types of financing, such as SBA loans, that could be used to pay off student loans.

The 5 Best Banks for Small Business Loans in 2023

December 29, 2022Blog0 comment

Best Banks for Small Business Loans

We at Nav have worked with a lot of lenders over the years, and when it comes to traditional lenders—AKA local and national banks—these consistently come to the top of the list.

Chase
Live Oak Bank
Wells Fargo
Capital One
Bank of America

Chase Bank

It shouldn’t surprise you to see Chase leading the pack. It has one of the more robust credit offerings for businesses of all sizes, including those who need working capital, equipment financing, or commercial real estate loans. If big borrowing is your goal, this SBA lender offers plenty of SBA-backed options, including SBA 504 loans, which can connect you with a million or more for that new storefront or manufacturing plant.

Not ready to go big yet? That’s OK, too. Chase’s line of credit program is a great way to access capital as needed, which you can borrow against as you need it to grow your business.

Here are your business banking options with Chase Business:

Checking
Credit cards
Lines of credit
Loans
Savings and CDs
Merchant services
Collections services

Live Oak Bank

Never heard of Live Oak Bank? You’re not alone. This SBA-preferred lender is completely online, with no physical branches to visit. What they do focus on, however, they do very well. Choose from SBA 7(a) loans or 504 loans.

You won’t find a lot of extra business lending programs here, but with SBA preferred status, Live Oak Bank can get you approved and on your way quicker than most. They also handle other government small-business lending programs, such as agricultural loans through the USDA. Don’t ignore what an online bank can do for you!

Here’s what you can get with Live Oak Bank:

SBA loans (7(a) and 504)
Agricultural loans
Commercial loans
Savings
CDs

Wells Fargo

One of the big names in business banking, Wells Fargo has been handling consumer and business financial loans for a long time. With a full range of options, including equipment financing, short and medium-term loans, working capital loans, lines of credit, and business credit cards, this bank is perfect for someone who knows they need business financing but aren’t sure where to start.

Wells Fargo also works with the SBA small business loans program! Extra perks can be found for existing customers; if you already use Wells Fargo for your personal checking account, business checking account, or savings account, it’s worth checking out.

Wells Fargo has a lot to offer businesses looking for financial services:

Checking
Savings and CDs
Commercial loans
SBA loans
Lines of credit
Commercial real estate loans
Credit cards
Healthcare practice financing
Merchant services
Payroll services

Capital One

Capital One is a familiar name when it comes to business credit cards. That’s because it offers some startup business options that allow even those with less-than-excellent credit to get access to rewards credit cards with low or no annual fees.

If you’re looking for a more traditional loan option, however, the bank can help there, too. It partners with the SBA, offering loans for various amounts in almost every industry. Other lending options, including equipment financing and lines of credit, can be just what you need to get to the next level of business. (One other solid perk of Capital One is that it does so much online! It’s ideal for someone who travels and wants a bank that will be everywhere they go.)

Here’s what you can get with Capital One:

Checking
Savings
Escrow
Credit cards
Equipment and vehicle loans
Lines of credit
SBA loans (7(a) and 504)
Real estate term loans
Business installment loans
Trade credit
Merchant services

Bank of America

Bank of America has been more aggressively financing small businesses in recent years. With SBA loans and traditional business loans, lines of credit, and credit cards, it’s been giving a variety of solutions to small businesses poised for growth.

Bank of America values its relationships with customers and is more likely to offer great rates if you have other bank account services with the company.

Here’s more of what Bank of America offers:

Checking
Savings
Secured and unsecured loans
Lines of credit
Credit cards
Vehicle loan
Commercial real estate loan
SBA loans
Franchise financing
Payroll services

Types of Business Loans That Banks Offer

Many of the top banks got on our “best of” list because of the variety of funding options they offer. It’s a benefit to business owners to be able to walk into a bank branch, sit down, and spell out their needs in person—and have confidence they will get just the right lending product.

Looking at the long list of loans, lines of credit, and financing options can be overwhelming, however. We advise getting to know a bit about all the different financing banks are likely to offer; it will make the search process much less stressful.

Term Loans

A business term loan is probably the most straightforward loan option. Term loans have a preset amount and a specific timeframe to repay the funds, with a monthly payment schedule that’s consistent throughout the term of the loan.

Within this category, in addition to long-term loans like mortgages are what banks call medium-term and short-term loans. As the names suggest, each will give you a different timeframe to repay the loan.

With shorter-term loans, you need to make sure you understand the true dollar cost of the loan, which is not well-represented by APR for loans with a term under 12 months. A good rule of thumb to remember is that the shorter the term, the higher the periodic payment will likely be, but the less accrued interest you’ll likely pay.

Business Lines of Credit

A business line of credit is traditionally a preferred financing option for many small businesses. Rather than getting a lump sum, you can access the credit line as you need it, repay what you’ve borrowed, and access it again. What’s more, you only pay interest on the part of the credit line you use.

A business line of credit may be a good way to augment occasional cash flow challenges. It has the flexibility of a credit card that you can borrow against whenever you need it. Just stay below your established credit limit, make on-time monthly payments, and watch your personal and business credit scores soar!

You’ll pay anywhere from 7 to 36% for this type of financing. Just like credit cards, it will depend on your business credit profile, personal credit score, and how big the credit line is.

SBA Loans

The SBA isn’t really a lender but works with SBA-approved lenders. Loans backed by the Small Business Administration vary in length, amount, rate, and intended purpose. The most common SBA loans include the following:

SBA 7(a) Loan. Consider this for working capital (this is the most flexible SBA loan program). This general-purpose business loan comes in amounts up to $5 million with low rates and origination fees.
SBA 504 Loan. This is a good option for purchasing real estate or buying other fixed assets, with an upper limit of $20 million. Like other SBA-guaranteed loans, you’ll need collateral and a personal guarantee for this, as well as excellent credit. If approved, your rates will be considerably low.
SBA Microloans. Not every business needs to borrow millions. That’s where these smaller microloans come in. With a loan amount cap of $50,000, these loans are for startups or those just launching that have yet to demonstrate much annual revenue. Not all banks offer these, even if they do participate in other SBA programs. For a young business that can leverage a relatively small amount of borrowed capital into a big result, these loans could be a good fit.
SBA Express Loans. Like the 7(a) program but need your money fast? You may qualify for an express loan, which gives you a quicker response. Find out if you’re approved in just days instead of months.

With the exception of the Express Loans, which are often approved within a few days, most SBA loans have a lengthy application and approval process that require financial reports, a detailed business plan, cash flow statements, tax returns, and more. They aren’t ideal for anyone needing money in a few days—or even weeks. Expect to spend up to a month or more demonstrating your ability to repay and going through the loan application process. Still, the hassle can be worth it since the interest rate you pay will likely be one of the lowest of all your loan options.

If you want to get started with an SBA loan, find a lender through the SBA LenderMatch program, or contact any of the above banks directly. Most are partners in the SBA programs!

Equipment Loans

Also known as equipment financing, these loans are self-explanatory. Get help paying for new machinery, manufacturing tools, or even commercial restaurant stoves and fridges.

The rates on these loans are going to depend on your credit profile, ranging from 8 to 30%, but offer longer repayment terms than some short-term loans. These loans are considered secure since the equipment being financed is also the collateral for the loan.

Long-Term Real Estate Loans

If you’ve got a mortgage for your home, you already know how these work. Business real estate loans are considered long-term financing because they typically include longer repayment terms to help with the higher costs of purchasing real estate. Expect to get lower rates for commercial property purchases, but prepare to need plenty of cash on hand for a down payment. Banks like to see a willingness to invest upfront in the form of a 10-20% down payment; like buying a home, the more you can provide, the better rates you are likely to receive.

If you find yourself unable to get a more traditional long-term real estate loan that many banks offer, going through the SBA’s 504 loan program may be a good option. The SBA is often willing to work with businesses that haven’t been able to get funding elsewhere but demonstrate a strong annual revenue and have a very good or excellent credit score.

Traditional Banks vs. Online Lenders

When it comes to getting cash for your business, it may seem that online lenders or other alternative lenders and their simplified loan applications and shorter approval times are too good to be true. In fact, they can be a suitable option for funding, especially if you need a decision in days—or minutes!

What’s the catch? Unlike traditional bank loans, online lenders use a different set of criteria to evaluate creditworthiness, meaning that if you don’t qualify for a loan at the local bank, an online loan could be an option for you. They are making access to capital easier and faster, but that access will likely come with higher fees and APR—although that isn’t always the case for borrowers with an excellent credit profile.

Instead of taking weeks or months to get a traditional bank loan, an online loan often takes only a day or two, making this faster access to capital worth any additional cost. Be sure you understand the repayment terms of a loan before you sign on the dotted line, no matter where you apply.

Alternatives to Bank Loans for Small Businesses

If you have bad credit or haven’t been in business long enough to qualify for the options we’ve already discussed, check out alternative business lenders that offer competitive rates with less stringent requirements. There are so many financial institutions you can qualify for financing with!

Business Credit Cards

Business credit cards work a lot like personal credit cards. The perk of business cards over personal cards, however, is that your good repayment history will help you build your business credit profile. Additionally, you can often get free cards for your employees, and their spending can help accumulate points and cash back rewards that you can later redeem for items for your business.

Expect to pay the same kind of higher rates that personal cards charge, anywhere from 10 to 28%. FYI: the better the rewards, the higher the annual fee tends to be. Shop around to get the best business credit card from your bank, and consider upgrading as your annual revenue grows.

Merchant Cash Advance

New businesses may not qualify for traditional loans, but if yours can demonstrate steady sales revenue, you may qualify for merchant cash advances. These aren’t loans but instead are an advance on future sales. You’ll repay the advance daily or weekly from your debit and credit card sales.

Secured Business Loans

If you have bad credit and don’t qualify for unsecured business loans, you may be able to take out a secured business loan. In this case, you put down collateral against the loan. Why? If you are unable to pay the loan off, the lender can take that collateral (perhaps equipment or a vehicle) to cover your debt.

What is the Easiest Bank to Get a Small Business Loan With?

There’s no easy answer to this question, as it will depend entirely on what you are looking for and your qualifications. Online lenders are usually more open to those who might not qualify at the bank, although you’ll pay more for your loan.

If you have good credit, you have far more options and will get better loan terms. If your credit could use some work, consider postponing applying for a loan and spending time rebuilding your credit by paying down debt and making on-time payments.

How to Qualify for a Small Business Loan from a Bank

Once you narrow down the list of loan products that you’re interested in, you’ll want to eliminate any you don’t qualify for. Most traditional loans require you to be in business for at least two years and have credit score requirements (SBA loans often want you to have FICO scores of 680 or higher).

You may also need to meet a certain annual revenue, so read the fine print with the lender you’re considering to make sure you meet it.

What You Need To Apply for a Small Business Loan from a Bank

Once you’ve decided which bank or alternative lender you want to apply with and know which type of loan you want, gather what you’ll need for the in-person or online application.

Traditional lenders like banks may want more detailed financial statements, tax returns, and profit and loss statements, while an online lender may just want a few details about what your annual revenues are.

You’ll need to provide details for your business bank account so funds can be deposited once you’re approved for a loan.

Small Business Loans Help You Grow

Smart small business owners do their homework on lending products and the best banks for small business loans in advance of needing the money. Follow suit, and you’re sure to find the best option for your business.