Monday, October 3, 2022
Home Business tips Comment on Business Warrior to Offer $5 Million in Small Business Loans...

Comment on Business Warrior to Offer $5 Million in Small Business Loans by Robert Brady

Business Warrior has announced it is offering $5 million to small business owners that are having a hard time getting loans from traditional banks. The company will provide loans from $5,000 to $50,000 without the exorbitant rates cash advance companies charge.



Company Offering $5 Million in Small Business Loans

One of the challenges small business owners face, especially those with less than stellar business scores, is affordable funding. According to Rhett Doolittle, CEO of Business Warrior, small business owners have been denied because of, “… old and outdated legacy credit processes.”

Doolittle goes on to say, “With our new lending product, we will give reasonably priced loans that have not existed before to the businesses that need it the most.”

Considering some lenders, such as cash advance companies, charge interest rates that can go as high as 40%, the 15% Business Warrior charges is a more affordable funding option. Business Warrior goes on to say this rate is higher than a traditional small business loan from banks.

However, it is important to note most small business owners cannot get approved for loans from banks. So much so, big banks only approved 14% of small business loans in September 2021, according to Biz2Credit. This means 86% of small businesses applying for loans are being rejected. A staggering denial rate no matter how you look at it.

Small Business Lending Index for September

According to the Biz2Credit small business loan approval rate for September, it is up at all financial institutions. However, the highest approval rate is only at 25.2% from alternative lenders and it goes down to 21% for Credit Unions, 19.3% at small banks, and 14% at big banks.

As the data shows, the approval rates are still low for small business owners. And more often than not, they have to find different funding sources, and unfortunately, this means very high interest rates.

The $5 million Business Warrior is making available will help small businesses without the burden of the outrageous interest rates cash advance companies charge. Here is to more lenders making funds available to small business owners during these hard times.

Image: businesswarrior


Most Popular

Ian strengthens into major Category 3 hurricane as storm makes landfall in Cuba

Hurricane Ian strengthened into a major Category 3 storm early Tuesday morning as it made landfall in western Cuba, U.S. officials said.Landfall was just...

Hunting For An Exciting Back Yard Family Game, This Dad Invented His Own. Now It’s Taking Off.

Joe Bingham, a structural engineer from Ogden, Utah, was looking for a backyard game he could play with his seven kids, instead of driving...

Is the Market Overreacting with Shopify Stock?

Shares may have been overly punished by the markets Shopify continues to grow, but at a slower pace Shopify says 2022 is the ‘transition back to...

Comment on Following the Rules: Training Small Business Owners Better by Charles Iarocci

Your Business Professor was teaching our 5-year-old boy some basketball moves in our backyard court …Grab a jersey here. Push there. Lean. Scream.Charmaine looked out the...