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 According to Rhett Doolittle, CEO of Business Warrior, small business owners have been denied because of, “… old and outdated legacy credit processes.”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.