Important For Merchants – Small Business Loan Myths Debunked

The rise of alternative lenders has made lending standards change drastically. Today, small businesses can easily qualify for a business loan and get approved without major difficulties. If you are looking forward to small business financing, here are 4 myths you need to know before applying.


  1. If a Traditional Bank Doesn’t Approve You, You Cannot Get a Small Business Loan

Previously, traditional brick and mortar banks were the only option available to business owners. After the 2008 financial crisis, major banks made their lending standards tighter. It became nearly impossible for small businesses to get approved for funds they needed.


Happily, in our modern times, small business owners can turn to reliable alternative lenders like First American Merchant to get the necessary business financing for their companies.


  1. A Perfect Credit History Is a Must

With traditional banks, having a perfect credit score is mandatory. When it comes to alternative lenders like FAM, having a less-than-perfect credit score won’t make it impossible to get the business loan you need. In fact, almost all lenders will consider your credit score before deciding on whether to approve you or not.


Unlike traditional banks, alternative lenders have more lenient standards for a loan application. Most online lenders require a credit score of 550 or above. This refers to short-term lenders and those offering more expensive products.


For longer-term and lower-cost debt online, you should have a score of at least 620. 700+ will allow you to have better chances with products. Fortunately, bad credit is not a problem for First American


  1. Smaller Loans are Impossible to Get

A small loan means less of a return; so traditional banks don’t regard the costs to be worth it. Unlike banks that are not typically interested in smaller loans, alternative lenders are eager to offer loans with smaller amounts. is a reputable small business lender that offers and the best payment processing services in the industry. Turn to FAM for a First American Merchant Cash Advance and other merchant funding opportunities to grow your business.

  1. Small Business Loans Require Longer Time to Get

Local banks typically require lots of paperwork to fill out your application. In addition, you could wait for months to receive business funding. With a trustworthy online alternative lender like FAM, filling out a loan application will take just a few minutes and the minimum of documentation.


Business funding programs offered by First American Merchant are hassle free and can have money in your bank in as little as 72 hours.


Alternative lenders have completely changed the business lending game for small businesses. Today, it’s too easy for entrepreneurs to get the business funding they need without challenges. As for the speed of getting a business loan, it depends on what type of type of loan you’re applying for. In any case, make sure to have all your financials completely prepared when applying for business funding.


$5,000 Personal Loans With Bad Credit: The Simple Route To Loan Approval

Getting access to cash loans when most needed is not a new phenomenon, but in recent years the number of people in need of financial resuscitation has grown dramatically. The good news is that the chances of securing even a $5,000 personal loan with bad credit are better than ever.

Traditionally, a low credit score would seriously impede the chances of getting loan approval, but the growth of the online lending industry means there is now a wealth of lenders offering more affordable terms to bad credit borrowers – including fast loan approval.

Why is this the case? Well, it comes down to the fact that the key to getting any lender to grant a personal loan is to convince them that repayments will be made on time every time. There are several ways to accomplish this.

The Issue of Loan Approval

So, why would any lender be willing to grant a $5,000 personal loan with bad credit? Well, thankfully the approval process for any loan is standardized so that as long as the right boxes are ticked, there is no reason for a lender to reject the application.

This essentially means that approval is always possible as long as the set criteria and any additional conditions are met. Of course, when the sum of money applied for is relatively low (like $5,000) this is more easily achieved, and fast loan approval is well within reach. But larger sums are more challenging to secure.

The steps needed to build lender confidence are pretty straightforward, and really come down to addressing the usually problems with an application – for example, proving that repayments on the personal loan are affordable, and that there is a commitment to make the repayments on time.

Making The Loan Is Affordable

Affordability is the magic word when seeking loan approval. No lender, even for a small sum of $100, will give the green light if the applicant has no way of repaying it. So, getting a $5,000 personal loan with bad credit is dependent on proving repayments are possible over the full term of the loan.

There are ways to ensure affordability. For example, seek a longer loan term to ensure the monthly repayments are less. If a $5,000 loan is repaid over 2 years, the monthly repayments are usually around $225. But over 5 years, the same loan would cost just $90.

Getting fast loan approval is most likely when the sum to be repaid falls well within the 40% limit set by the debt-to-income ratio. The ratio stipulates that no more than 40% of available income can be used to repay any new personal loan – and it is likely that $90 will meet that condition easily.

The Criteria Applicants Must Meet

Of course, getting to the stage of proving affordability can only come after the basic loan criteria are satisfied. Even when applying to online lenders, these criteria are the normal set covering age, nationality and employment status. Applicants for a $5,000 personal loan, with bad credit or not, must meet these 3 criteria.

First of all, the applicant must be over the age of 18; secondly, the applicant must either be a US citizen or be a legal long-term resident; and finally, the applicant must be gainfully employed in a full-time job.

A fourth condition relates to having a bank account, thus allowing for fast loan approval and easy funds transfer. It also means the lender can arrange to have repayments made automatically from your account every month, thus reducing h possibility of missing any personal loan repayments.

$5,000 Personal Loans for Bad Credit: Climbing Back to Financial Strength

A major hurdle that applicants with bad credit scores face is getting the funds necessary to begin their financial recovery. Most traditional lenders are unsure about accepting applicants with poor credit histories. But the growth of alternative lenders online has opened the way towards small loans, like $5,000 personal loans, for bad credit management purposes.

For any applicant, the most stressful time is awaiting approval. But there are ways to greatly improve the chances of getting fast loan approval. Of course, it starts with meeting the basic criteria that lenders set out, and continues with finding the right lender, and the right loan deal.

Also, enhancing aspects of the application can improve matters too, with an improved credit score lowering interest rates, and the addition of a cosigner practically removing the risks for lenders. With all of these, getting the personal loan is all but a formality, and the route to financial recovery a reality.

Qualifications to Meet

Meeting the basic qualifying criteria is the first step to take when applying for a $5,000 personal loan for bad credit. The qualifications are pretty basic and should be satisfied with little trouble, with just four principal qualifications to worry about.

First, applicants must prove they are over the age of 18. Second, they must be either a US citizen or have a permanent residency visa. Third, they must a dependable source of income, which basically means that they are employed full-time. In fact, there is usually a stipulation that they be employed in that job for least 6 months before making the application.

Finally, they must have an active bank account. This is crucial if the advantage of fast loan approval is to be enjoyed, with funds deposited directly into the account within 24 hours. Repayments can also be made automatically on a set repayment date. So, it becomes almost impossible for the borrower to default on the personal loan.

Terms to Consider

The advantages of getting a $5,000 personal loan for bad credit management are pretty clear. The extra cash can be used to immediately clear some (if not all) of the existing debts. As each debt is cleared, the credit score is improved, making future loan terms better. And, of course, extra cash is freed up to improve the overall financial situation of the borrower.

But it is important to accept some compromises in the initial $5,000 loan if there is to be any chance of getting fast loan approval, especially with bad credit. With the credit score high, the interest rate charged will be higher. This means the monthly repayments can be a little more expensive – though not to any major degree.

Also, it may not be possible to get approval for the full sum in one go. Instead, it may be necessary to divide the sum into a number of personal loans and apply for them separately. For example, 5 successive payday loans of $1,000, each used to repay an individual debt, can provide a gradual improvement.

Find a Cosigner

Perhaps the surest way to secure a $5,000 personal loan for bad credit is by adding a cosigner to the application. Lenders are fond of cosigners because they provide a guarantee that the monthly repayments will be made, even if the borrower is unable to make them.

The benefit for the borrowers, however, includes low interest rates since the risk of default is practically removed. And with nothing to worry about, lenders are happy to grant fast loan approval.

However, be sure the person chosen for the job has an excellent credit record, and has a reliable income that is also large enough to handle the personal loan repayments.