Here’s a quick history lesson: the 2008 recession sent banks into a tailspin. The government bailed out most of them, and then implemented stricter regulatory rules and restrictions in an effort to protect us from future recessions. Sure, our economy has bounced back since then – but it’s been much harder for small business owners like you to get loans through traditional lenders.
The traditional small business lending process goes a little something like this:
- It takes an average of 29 hours to apply with a traditional lender
- Small businesses who manage to get approved wait 2-3 months to find out
- Traditional lenders reject 80% of small business owners
- After approval with a traditional lender, it takes about 90 days to get funding
So, yeah, trying to get a small business loan from a traditional lender is painstaking, slow, and not likely to result in approval. It’s a bummer… but there are other solutions.