New Jersey Business Loans: JSV Capital vs. Traditional Lenders

When you’re a small business owner, it’s in your best interest to compare business loans before settling on just one. There are many forms of financing available and some will suit your business better. All loans are different, so be sure to consider what JSV Capital can offer compared to more traditional lenders before deciding which route you should take.

How to start

If you want to get a traditional loan, you need to start building your business reputation before you even need the money. First, you need to make sure your personal and business credit ratings are as high as possible. Many companies struggle with this first part because they do not have a working capital loan in place. You must obtain a business credit card for your business before opening and make payments in a timely manner.

This credit card will usually need to be acquired from the lender you hope to work with in the future. Establishing a working relationship with a lender is essential, as a solid foundation of trust is required to obtain financing. If a lender has no prior knowledge of your business, you’re going to face an uphill battle to get financing.

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How JSV Capital is different

It takes a lot of time and concerted effort to get working capital loans for small businesses other lenders. With JSV Capital, you don’t have to worry about establishing a prior employment relationship. The application process is fast and you will know whether or not you have been approved within 24 hours. With other lenders, you may have to wait weeks to learn that your application has been denied. We don’t leave you in the dark like that.

The application process

You must make sure to dot the i’s and cross the t’s when filling out the paperwork for a traditional loan. In addition to the lengthy application itself, there are many other documents you need to provide, including:

  • Personal Summary
  • tax returns
  • Copy of rental contract
  • Company certificates
  • Bank statements from up to a year ago
  • Franchise contracts
  • Ownership structure

You may need to provide many documents depending on the type of loan you are trying to acquire. If something is left out or something is incomplete, your business can be further hampered. It may take weeks before you hear that you need to submit something else. Therefore, it takes even longer for your loan to be approved or denied.

Before applying, make sure you are applying to the right lender by knowing the following.

  • Are there any hidden fees?
  • Always ask about prepayment penalties. As a small business owner, it helps if you can pay off your loan sooner. Ask if there are any penalties or discounts for early payment.
  • Know your personal and professional credit score before wasting your time with different lenders. Not all lenders will take bad credit. This will help you narrow down your search. If you find yourself with bad credit, you may want to research other lenders who can help you.

How JSV Capital Funding Compares

Our goal is never to confuse you when you apply. You can consult the application form, which is only one page. The only documents you will need to send are bank statements for the last three months.

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Payment Plans

Small businesses need loans for a variety of reasons. No matter what it’s going to be used for, you need to be sure to pay it back in a timely manner. You can set up a payment plan with other providers, but one problem many business owners face is paying it back quickly.

The longer it takes to repay a loan, the higher the interest rate will have to be paid. Unfortunately, many banks and other traditional lenders require business owners to repay the loan between five and ten years. It may sound nice, but it can be difficult if you want to avoid monthly payments in the long run.

Many online lenders have a similar process, but even with them business owners have to repay over a period of six to 18 months. In fact, many traditional lenders take this practice one step further and impose a prepayment penalty. This means that if you try to pay off your loan too soon, you will have to pay fees on top of the loan and the interest rate.

Short term program

We understand that sometimes a business needs a quick injection of cash. This quick boost shouldn’t bother you for years to come, so you can choose a term from three to 36 months. We are committed to working when you need us.

This means that if you need more money to payroll and can pay us back in a few months, we are ready to work with you. However, if you have a long-term project on the horizon and will need a lot of funding in the near future, we will work with you there as well. It’s like your working capital line of credit that you can use as you see fit. The JSV Capital program is a true ready to use for your working capital solutions.

Collateral

Generally, there are two types of loans that most lenders offer. These are secure and unsecure. For a secured loan, the business must put up something of value. Therefore, if the person fails to meet the payment plan, the lender acquires the collateral. It should generally be a vehicle, equipment or building,

Unsecured loans do not require any collateral. As a result, the lender faces a much higher risk. As a result, many lenders tend to avoid unsecured loans when possible.

Unsecured loan of choice

Since secured loans are much safer for lenders, they are more common. For companies that do not have sufficient guarantees, it can be difficult to find financing. Fortunately, JSV Capital only deals with unsecured financing, which means that you will not have to provide any collateral when obtaining financing with us.

How to use your loan

Some traditional lenders will want to know, in detail, what your business loan will be used for. Some lenders are more lenient than others. Other lenders will have strict restrictions on what it can be used for. In many cases, your loan must be for sound business purposes as defined by the Small Business Administration. It can get quite objective, making it more difficult to get the funds you need.

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How to use a working capital loan

You can use your loan to develop and sustain your business. A few of the things our previous clients have used their loans for in the past include:

  • Cover payroll in the event of a cash shortfall
  • Buy equipment and supplies when funds run out
  • Use of funds as a bridging loan
  • Increase revenue through additional advertising

This list is just a small sample of what you can use your funding for. With other lenders, you need to read the agreement carefully to make sure you’re not spending the funding on something you’re not supposed to.

Build relationships with business owners

JSV Capital is dedicated to building real relationships with small business owners, and we want to help. You can start the application process today. As long as your business has been around for at least a year and earns a minimum of 10,000 monthly revenues, we should be able to provide you with the financing you are looking for.

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