Don’t Count Out the Bank When it Comes to Small Business Lending

“So ideally, the best-case scenario for a business owner is always to try and get approved by a bank, it gives them more flexibility, you’re able to build that relationship with the bank,” said Juan Caban, Managing Partner at Financial Lynx.

It’s an old adage that the bank is the best option, but given their historically tough criteria and reputation for sluggishness, the feasibility has long been a question. Caban, however, said that obtaining a bank line of credit is not as daunting as it sounds. Qualifying businesses (TIB 2+ years, 700+ FICO, and favorable industry) can obtain a pre-approval in 24 hours, approval in 7-10 days, and funding in another 2-3 weeks, making the entire process last about 3-4 weeks overall, according to Caban. And brokers can earn a one-time fee of up to 5% as well, he added.

“Bankers tend to be a little old fashioned oftentimes, now some of that’s changing in how they evolve,” said Patrick Reily, co-founder at Uplinq. “We’re dealing with some really interesting progressive banks in the last five years that are thinking about ‘how do we do better and how do we change things,’ but the reality is that they tend to move more slowly.”

Reily’s company, Uplinq, empowers lenders like banks, credit unions, or other financial institutions to approve and manage risks on loans they would have otherwise declined.

“Some of the companies we work for, they’re able to increase the number of people they lend to by 5 to 15 fold,” Reily said. “Think about that. That’s a huge difference.”

Technology, it appears, is widening the approval window, which means business owners shouldn’t count out options they previously thought impossible.

Caban of Financial Lynx, echoed same, explaining that business owners should explore all potential avenues.

“We pride ourselves in knowing the trends and products in banking and can be a great asset for Brokers/ISOs,” Caban said.

“I think it’s smart always to look broadly and understand what your options are, who is best capable to serve you,” said Reily.