Tech Startup Loans: SVB Bank & Signature Bank Closure
Imagine it’s business as usual, you’re ready to ship your next batch of products or begin working on a new project, and nothing can go wrong.
Or can it?
Many saw it coming, but most couldn’t imagine giant corporations like SVB Bank and Signature Bank shutting down. One weekend changed it all, and the US banking turmoil has left many, particularly small business owners reeling in havoc with the freezing of business bank accounts.
The collapse of these two banks has resulted in anxiety and financial insecurity for both individuals and businesses alike. With the suspension of loan programs, personal credit lines, and other services that have traditionally been available through these banks, it’s harder than ever to secure capital when you need it most.
Silicon Valley Bank (SVB) was a significant player in providing loans to the tech startup industry. Signature Bank was known for having the first blockchain-based digital payment platform and business-friendly banking.
With the Fed’s recent announcement of a new business loan program, businesses have been able to get some relief. But as the future remains uncertain, it is hard for many small businesses to trust traditional banking institutions and are seeking alternative financing options.
These two large bank closures have left many startups and existing businesses scrambling to find alternative sources of funding to cover their expenses due to the run on the bank and takeover by the FDIC.
BitX Has The Experience
BitX has helped numerous small businesses in the past decade who struggle to obtain loans. And during these unprecedented times, we’re buckling up our seatbelts and doing what we do best – providing access to fast, easy loans.
Multiple tech startups and existing businesses will need loans to cover expenses due to the Silicon Valley Bank (SVB) and Signature bank closures. In this blog, we will explore why and how these businesses will have to sail through these tough times.
We will also discuss the multiple options BitX Capital has on offer during this period of financial instability to keep businesses afloat. We are dedicated to serving the needs of small business owners and providing them with the essential support they need during this critical time.
Why Tech Startups Need Loans
Tech startups are unique in that they require a significant amount of capital to get off the ground, so they worked with Silicon Valley Bank. Unlike traditional businesses, tech startups often require substantial investments in research and development, marketing, and talent acquisition, all of which can be costly.
For many tech startups, the closure of Silicon Valley Bank (SVB) has come at a particularly challenging time. The COVID-19 pandemic has led to economic uncertainty and volatility in the financial markets, making it difficult for startups to secure funding through traditional channels. As a result, many startups are turning to alternative sources of funding, such as loans.
Loans are useful for both startups and existing businesses to acquire the necessary capital for expenses like rent, salaries, marketing, and more. Loans also offer startups flexibility in terms of repayment, allowing them to choose the repayment period that works best for their financial situation, Silicon Valley Bank (SVB) and Signature Bank put them in.
Locating a suitable lender and loan can be difficult, particularly for new startups unfamiliar with the borrowing process. This is where BitX Capital comes in.
What does it mean for your business?
“I can’t help but think of the hundreds of thousands of small businesses that are stuck for the time being, and even some of their day-to-day operations are at stake. Indeed, this is an unprecedented situation, and the Fed is actively doing its part through BTFP or Bank Term Funding Program. But with any new government program, the rollout is not easy. There will be liquidity needs, and these small businesses need an immediate solution for their cash crunch.”
Todd Rowe, President, BitX Capital
“The Fed can’t raise rates anymore as it has big consequences. The Fed will lower rates, but the big banks will be asked to stop lending to help curb inflation, and there will be a liquidity crisis for businesses and individuals in the years to come. We (BitX) will help business owners get access to capital with alternative lending sources, so businesses can continue to grow and thrive.”
Todd Rowe, President, BitX Capital
Let’s dive right into our loan options!
Short-Term Business Loans
Short-term loans are a type of borrowing that typically lasts for a few weeks or months. These loans are designed to provide quick access to funds in an emergency situation.
They are helpful because they can help individuals cover unexpected expenses or cash flow shortages that may arise between paychecks.
Short-term loans offer faster approval and more flexible eligibility than traditional bank loans.
They’re feasible for those with poor credit, as some lenders don’t require high credit scores for approval.
Short-term loans have higher interest rates and fees, so use them responsibly and only when necessary.
Small Business Loan
For many reasons, a midterm business loan, or small business loan can be a valuable resource in times of cash emergency.
Small business loans provide more substantial loan amounts than short-term loans, aiding businesses with substantial expenses or investment opportunities.
Midterm loans offer better rates and longer terms, making repayments manageable for businesses that need extended repayment. Small business loans help build credit and establish lender relations for future borrowing.
In summary, midterm, and small business loans offer flexibility and financial aid during emergencies and promote long-term success.
Personal Term Loans for Business Purposes
Personal term loans can be a great option for businesses that require frictionless funding during a cash crunch or business emergency. These loans can provide a quick and easy source of financing without the need for extensive paperwork or collateral.
Personal term loans for businesses are usually unsecured, sparing businesses with minimal assets from pledging collateral.
Personal term loans can be acquired rapidly, often in days, which is vital during emergencies. These loans provide flexibility for various business uses.
In summary, personal term loans are a valuable resource for businesses that require rapid and flexible funding during financial crises.
Factoring Invoices or Invoice Funding
Factoring or invoice financing can offer several advantages for businesses facing an emergency or cash crunch. One major advantage is that it provides businesses with immediate access to cash by selling their outstanding invoices to a third-party financial institution. This can help businesses improve their cash flow, meet their financial obligations, and cover expenses during difficult times.
Furthermore, factoring or invoice financing can help businesses that are unqualified for bank loans by relying on invoice value.
Factoring or invoice financing can save time and resources for businesses by taking on the responsibility of collections.
In summary, factoring, or invoice financing, can effectively boost cash flow and aid businesses during emergencies or cash shortages.
Why BitX Capital is the Best Source for Finding a Loan
BitX Capital is a marketplace for small business loans that connects its clients with the right lender and loan.
The platform offers a variety of loan options, including term loans, factoring, lines of credit, and equipment financing, among others.
What sets BitX Capital apart from other lenders is its focus on helping startups and small businesses access funding. The platform offers a quick and easy application process, with loan approvals typically taking just a few days. This makes it an ideal option for startups that need capital quickly.
BitX Capital works with a network of over 75 lenders, allowing it to offer a wide range of loan options.
This means businesses can find a loan for their financial situation, such as a lump sum of cash for expenses.
Another benefit of working with BitX Capital is its commitment to transparency. The platform offers transparent loan terms and fees, allowing businesses to understand the genuine cost of borrowing.
It’s crucial for all businesses to forecast expenses and cash flow precisely to thrive.
The closure of SVB and Signature Bank has created a challenging environment for tech startups and businesses alike looking for funding. Startups can use loans to get the funds they require for expenses and growth.
When finding the right loan, BitX Capital is the best source for startups. For startups seeking funding, its transparent marketplace approach makes it an excellent choice to access the necessary capital for success.
With a wide range of loan options and quick approval times, BitX Capital is the perfect partner for startups looking to grow and thrive in today’s challenging economic environment.
To take action with BitX Capital, individuals can apply now on their website by filling out an application form and providing the necessary documentation.
Alternatively, they can call now to speak with a representative at 203-763-1430, who can guide them through the application process and answer any questions they may have.
If preferred, individuals can also email BitX Capital at [email protected] with their inquiries or request further information.