Alternative small business financing offers business owners another option when their conventional banks turn them down. When business owners want to expand, renovate, or increase their ROI, they usually understand the power of using OPM (Other People’s Money) to do so. Most business owners initially get spooked by the higher interest rates when it comes to this kind of financing. With a solid business plan in place, why wouldn’t you borrow $50,000 over 1 year or 2 years if you were able to increase annual profit by over $100,000 / year? Seems like a no brainer right? It has been done before and will be done again by savvy business owners.
Below are the top 3 advantages of choosing an alternative small business loan over conventional financing:
Flexibility – The best part is that alternative lenders realize not every borrower will fit within the conventional guidelines. With alternative lending, the underwriting is flexible. Poor credit, tax liens, and even recent bankruptcies may be overlooked if there are solid compensating factors. Time in business, consistent sales volume and decent cash flow can be major compensating factors.
Fast – No longer do you have to wait weeks to months to get your funding from your conventional bank. These types of loans are FAST! You can usually receive an approval within 24-48 hours and fund within 1-2 weeks. Let’s face it; sometimes a business owner needs capital right away but isn’t in a liquid position. Through this type of loan the money can be in your bank account in days. Now that’s fast.
Dependable – You can get honest, professional advice as lenders want your business. Some providers, like National Business Capital, have a 90% approval rate. There are no upfront costs at all. Millions have been lent to small business owners through Alternative Lending and this type of financing will continue to be a popular option.