Get funding for your business with an Alternative Lender
Alternative Lenders – Get Funding for your Business
Many business owners think that once they get turned down for a loan at a bank that there are no other options. Well there are other options and they are called alternative lenders. These types of lenders offer loans to business owners that may not have perfect credit or may not have the best cash flow. Well you might not know where to find them but all you have to do is a quick search on Google looking for a business loan and their ads will pop up. Most companies offering these types of loans are brokers and they have relationships with many different lenders so that allows them to find you a loan that is best for your business and your unique situation. In many ways using a Company like this is very valuable to your business. They have access to capital when your business really needs it and also they are able to get it in sometimes days or weeks as opposed to a bank which could take months for your typical business loan through a bank. Loan requirements when going through lenders like this are usually quite a bit more lenient than when you go through a bank. They usually are more flexible on your credit score and your debt to income ratio. Some of the different types of loans a lender like this can offer our small business lines of credit merchant, cash advance loans, equipment financing, commercial real estate loans and more. As you can see they have a loan for pretty much Any need you would have as a business owner.
Why would you want to use an alternative lender?
So why would you want to get a loan through an alternative lender? Many business owners turn to companies like this after they get turned down for a loan at a bank. Large banks have very strict underwriting rules that they must abide by. There is no flexibility in their underwriting guidelines. Smaller alternative lenders are able to make decisions based on more than just your credit score.
Why do they approve more loans?
The cash flow of the business and collateral you may have can be important factors in approving a business loan for you when using one of these lenders. Some business owners don’t think about the equipment, machines, vehicles or real estate that they may own as an asset that they can leverage to get the business capital they need to grow their business. The same goes for the cash flow that your business generates. If a lender can see that you have very steady cash flow coming in to the business and can logically expect that to continue, they will many times lend the money on this information. Usually on cash flow loans like this they will automatically deduct the payments from your account on a daily basis rather than monthly. Some business owners actually prefer this type of payment schedule as it keeps them on track to get it paid back very quickly.
Unsecured Business Line of Credit
In addition to these typical type of loans that are available from alternative lenders they also offer unsecured business lines of credit. These are a type of loan that you will rarely see offered at a bank. A loan like this is great for a startup as it does not require any length of time in business, business cash flow or collateral. The catch to the unsecured business line of credit is that it requires a good credit score. Now, there are also other advantages to this. Usually the bank will use your personal and business credit score for this loan. Therefore if the whole loan amount and payment are not on your personal files then your debt to income ratio wont be affected as much. Some of the loan will be able to be accounted for on the business side. This type of loan is a great option for new business startups.
Do you see the value in using an alternative lender now?
The next time you need a loan for your business think outside of the box and it may lead you to using an alternative lender.