Small businesses often find it difficult to obtain the funding that they need to keep cash flow strong and spur company growth from traditional credit unions and banks. Fortunately, alternative lending solutions are available to fill this gap and provide your business with the necessary financing. Here is some information about how you can utilize alternative lending to take your company to the next level.
The Basics of Alternative Lending
Unlike traditional brick-and-mortar banks, alternative lenders are generally private companies that provide their services online. This allows them to streamline the process of application and approval so that you can get the funding you need easier and quicker. However, government regulations are not as strict for alternative lenders, so you must find a lender that is reputable and reliable.
Options for Alternative Financing
A range of financing services is available through alternative lending. For instance, a revolving business line of credit allows you to draw on a predetermined amount of funding, and after you have paid back what you have borrowed, you have access to the same amount again. Business term loans are similar to those offered by traditional banks, but the terms of the loans are usually shorter. Equipment financing provides you with the means to purchase equipment your company needs. With merchant cash advances you can obtain an advance based on future credit card transactions; you pay for the advance with a percentage drawn from daily credit card sales. Invoice financing provides you with an advance using your unpaid invoices as collateral.
The Benefits of Alternative Lending
Obtaining funding through alternative lending has several advantages. First of all, the application process is easy; you can complete it on your computer or even on your smartphone. Needed documentation can be uploaded electronically. Processing times are much quicker too. Traditional banks take weeks or even months to get back to you after loan applications, but alternative lenders will have your answer ready within days. Even if your credit score or other criteria have caused you to be disqualified for traditional loans, you can most likely be approved for some form of alternative financing.
For more advice on alternative lending, contact Lode Capital.