Banks require that you provide them with an extremely detailed business plan. They will want to know everything down to the smallest detail about your business, your marketing plan, as well as your tax and bank records. The application process is very rigorous.
You will also have to provide proof of collateral or have a valuable property, they will take possession of your collateral should you default on your loan.
Credit Unions are very similar to a bank but are privately owned by their customers and run as a non-profit organization. They do offer business loans, preferably to small businesses and their loan products are comparable to that of a bank.
The Requirements for a Loan from a Credit Union
You will need to have a good rating of your credit, some collateral and a business plan. Although it all sounds similar to the big banks the level at which they set the bar is lower than the major business lenders.
You have to become a member of the credit union. This is simple and not a complicated process, you just have to open an account with the credit union and meet their member qualifications.
Loans with a credit union are usually processed in 30 to 60 days.