In the aftermath of the financial crisis just one decade ago, many traditional lenders are still very reluctant to approve loans. Fortunately alternative lending has stepped into fill the gap created, and to provide innovative financial products which can be of great use to many small businesses.
Here are some things you should know about alternative lending.
Applying online is very easy
A huge number of small businesses have already discovered that applying online is extremely easy and quick, and that the approval rate is much higher than it would be with any traditional lending institution. There is also considerably less paperwork involved, and secure online technology ensures that all your sensitive information will be safeguarded throughout the process.
Alternative lending should be your first choice
Rather than thinking of alternative lending as a last resort, it would be more accurate to consider it as your very first choice, since alternative lending was created in direct response to the market needs of small businesses. Alternative lenders are not subject to the same kind of regulatory constraints that traditional banks are, and this allows them the freedom to consider a company in its totality, rather than evaluating all loans based merely on credit score.
Innovative financial products
There is a wide variety of financial products available through alternative lending which were never available through traditional lending institutions like banks. For example, there are merchant cash advances, accounts receivable financing, equipment leasing and purchasing, and many other products which can help a small business acquire needed capital, without taking out a costly loan which may prove difficult to repay.
More small businesses can access cash
In the past, only those small businesses which had a solid balance sheet, which had several years of experience in their marketplace, and which had a very good credit score could hope to be approved for a bank loan. Through alternative lending, many more small businesses will now qualify for financing which they need to continue operations and to fuel business growth. With criteria for approval much different than traditional banks are obliged to use, alternative lending has made funding available to a vast number of new small businesses.
Would your company benefit by alternative lending?
The short answer is ‘yes’ – for almost all small businesses. There are a number of financial products made available through alternative lending which can be much more helpful than a loan from a traditional bank. Contact us at Goldendale Capital to find out which financial product in alternative lending might be most suitable for your company.