3 Advantages of Alternative Lending
Alternative lending is a dynamic way to receive the funding you need. If you’re struggling to complete a bank loan application or if you’re concerned about the strict qualification process, find out how an alternative loan can be a better option. Improve your financial situation by selecting the best loan option for your business and your specific situation.
1. Easy To Qualify
Compare alternative and traditional lending options to discover how easy it is to apply for an alternative loan. A traditional bank loan requires several difficult steps to become qualified. In order to receive a conventional loan from a bank, you’ll need to have a very high credit score, plenty of collateral and a strong cash flow situation.
This isn’t the case for most business owners, so it can be difficult to even qualify for the loan you need. With an alternative loan, you can receive financing with bad or no credit, shaky cash flow, and very little collateral. This allows you to secure the funding you need at the time you need it.
Short-term loans, in particular, don’t require the same strict qualification process. Because you plan on paying it back quickly, these loans are typically smaller and come with fewer strings attached.
2. Efficient Approval Process
Expect to wait at least two weeks to receive a decision about a bank loan. Even after receiving an approval decision, it can be almost two months before you can actually use your loan. This extended approval process makes a bank loan an inefficient way to secure financing in the event of an emergency or sudden investment opportunity.
An alternative way to receive funding is to choose a fast-paced option that offers quick decisions and quick dispersal. Use a flexible financing option to enjoy cash when you need it for a more responsive loan. Some of these loans are tied to an asset, which allows your lender to make a quick decision about the value of the loan and whether you’re approved for it.
3. Better Alternative Than Traditional Lending
Alternative lending is a better alternative for many small business owners. Receive a decision in as little as 24 hours and receive fast cash to fund your payroll, make a payment on time or purchase inventory. Compare alternative loan options today to find the best solution for your business. Don’t rely on slow and unresponsive banks to receive the cash you need, but stay flexible and keep your business moving forward.