Business Warrior announced that it is offering $ 5 million to small business owners who have difficulty obtaining loans from traditional banks. The company will provide loans of $ 5,000 to $ 50,000 without the exorbitant rates charged by the cash advance companies.
Company offering $ 5 million in small business loans
One of the challenges facing small business owners, especially those with less than stellar business results, is affordable financing. According to Rhett Doolittle, CEO of Business warrior, small business owners have been turned away because of “… old and outdated legacy credit processes.”
Doolittle goes on to say, “With our new loan product, we will be providing reasonably priced loans that were not previously available to businesses that need them most. “
Since some lenders, such as cash advance companies, charge interest rates as high as 40%, Business Warrior’s 15% fee is a more affordable financing option. Business Warrior goes on to say that this rate is higher than a traditional rate small business loan banks.
However, it is important to note that most small business owners cannot get approved for loans from banks. So much so that the big banks approved only 14% of loans to small businesses in September 2021, according to Biz2Credit. This means that 86% of small businesses that apply for loans are rejected. A staggering refusal rate no matter how you look at it.
Small Business Loans Index for September
According to Biz2Credit Small Business Loan Approval Rates for September, it is up in all financial institutions. However, the highest approval rate is only 25.2% for alternative lenders and it drops to 21% for credit unions, 19.3% in small banks and 14% in large banks. .
As the data shows, approval rates are still low for small business owners. And more often than not they have to find different sources of funding, and unfortunately that means very high interest rates.
The $ 5 million Business Warrior is making available will help small businesses without the burden of outrageous interest rates charged by cash advance companies. Here are more lenders making funds available to small business owners during these tough times.
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