Key Takeaways
- Traditional banks require permanent residence — categorically excluding asylees
- Banks take 4-8 weeks; Bankable takes 48 hours
- Banks require collateral, tax returns, and 2+ years history; Bankable requires revenue
- Bank rates are lower; Bankable is faster, accessible, and flexible
- For asylees, Bankable is the practical choice — banks are closed
Understanding the difference between traditional bank financing and Bankable's revenue-based funding helps asylee entrepreneurs make informed decisions. Here is a direct comparison.
| Factor | Traditional Bank | Bankable |
|---|---|---|
| Immigration requirement | Permanent residence (green card) or citizenship required | EAD (work authorization) accepted |
| Decision time | 4-8 weeks | 48 hours |
| Funding time | 6-10 weeks | 5-7 business days |
| Credit score requirement | 680+ typically required | Revenue is primary; credit reviewed |
| Collateral | Often required (business assets, real estate) | Not required for revenue-based funding |
| Tax returns | 2 years required | Not required under $250K |
| Operating history | 2+ years typically required | 6 months required |
| Maximum amount | Varies; SBA capped at $5M | Up to $5M |
| Rate structure | Interest rate (lower cost) | Factor rate (higher cost, more flexible) |
| Repayment | Fixed monthly payment | Percentage of daily/weekly revenue |
| Asylee approval rate | ~0% (citizenship required) | ~68% for qualified applicants |
When a Bank Would Be Better (If They Would Lend)
Traditional bank rates (prime + 1-3% for business loans) are lower than Bankable's factor rates. For businesses that qualify — citizens or permanent residents with strong credit and collateral — a bank is the lower-cost option over long repayment periods. Once an asylee becomes a permanent resident, they should establish a banking relationship and transition long-term capital needs to traditional bank financing.
Why Bankable Is the Right Choice for Asylees Now
You cannot wait for a green card that may be 5+ years away. Your business needs capital now. Bankable provides capital now, at transparent terms, without the immigration restriction that closes every bank door. The cost of Bankable's factor rate is the cost of accessibility — and for a business that generates meaningful returns on capital, it is worth it.
Frequently Asked Questions
Banks require permanent residence (green card) or citizenship as a condition of business lending. This is a policy decision, not a reflection of your business's quality. Bankable has a different policy.
Yes. Bankable's factor rates are higher than bank interest rates. The cost of accessibility and speed is real. For a business generating strong returns on capital, the math usually works.
Yes. Getting a bank account is separate from getting a business loan. Most major banks open business accounts for asylees with EAD, SSN, EIN, and business formation documents.
Bankable's revenue-based funding does not appear on your business credit report in the same way as traditional loans. Discuss specific credit reporting with your Bankable representative.
After you receive permanent residence (green card), establish 2+ years of business history, and build a relationship with a local bank, you can pursue traditional bank financing at lower rates.
Credit unions have similar citizenship/residency requirements for business loans. Some credit unions that focus on immigrant communities have more flexible policies — ask specifically about asylee eligibility.
Ask your Bankable representative about credit reporting. Building business credit through other means (net-30 vendor accounts, secured business credit cards) is recommended for all asylee business owners.
Some Community Development Financial Institutions (CDFIs) operate as banks and have flexible immigration policies. Search for 'immigrant-friendly community banks' in your area.