Every type of business requires some type of insurance or line of credit for a wide variety of reasons: start-up capital, equipment, inventory, office rental, etc. Because every business and every owner is different and has unique circumstances, the easiest business insurance to get Another owner may not be easier for you.
For startups or companies with no credit history or bad credit history, it can be difficult to get traditional bank insurances. Also, with a low credit score, your interest rate will be high, even if a insurance is approved.
Lenders usually look at more than your credit history. Other factors include your time in business, industry, your personal credit score, whether you have had any recent bankruptcies or defaults, balance sheet, business licenses and permits, tax returns, purpose of insurance, proof of collateral, and many other reasons.
If you think your financial situation is likely to improve, you will need to provide documentation to prove this. Always have your documents and financial files ready and organized anyway, so you can go through the application process as smoothly as possible.
Are SBA insurances the easiest business insurance to get?
Not many people consider SBA and long-term insurances to be the easiest business insurance to get, as the application process is very long and complicated. Only consider SBA insurances and traditional long-term business insurances if your credit score is high and all of your financial statements are set up and ready to go. However, the application process may take some time, so you will have to wait for approval.
If you need cash ASAP, there are options like merchant cash advances. This type of offer will help you gain access to capital. You will receive a lump sum cash, but you are expected to give away a portion of future sales. You will be responsible for paying the insurance itself plus fees. Although there are no set fees, $15 for every $100 borrowed appears to be a fairly typical amount seen by many cash advance merchants.
Invoice financing and equipment financing are very similar to their requirements. Previously, you would need to show details of your unpaid bills, as well as bank statements and other financial information. With the latter, you will need to explain what type of assets your company needs to purchase, provide a quote for equipment, business tax returns, bank statements, etc.
There are many other options for businesses of all sizes thanks to the Internet. Online lenders pop up all the time, although it’s best to stick with one that’s been around for at least a decade. Start your search with US Business Funding, a BBB-certified company. They will help you find the easiest business insurance to get for your needs.