Alternative financing comes from lenders that are not traditional banks. These alternative lending institutions make it possible for entrepreneurs and small business owners to get funding–even if you have a short business history (less than two years in business) and/or if you need a “small” loan for under $250,000. You may even get your small business funding with a lower credit score (say below 640). Alternative lenders offer a more personalized lending process, with less stringent guidelines.
Alternative Lending Advantages
Why should business owners consider alternative financing? These are the major benefits:
- Simpler qualification process: Non-bank lenders can use different information to gauge your reliability and creditworthiness. The system is not as rigid as what you find at typical banks, and many entrepreneurs see the alternative lender’s evaluations and loan decision-making as more fair and balanced.
- Funding Options: Major banks tend not to bother with loans they consider too small. They also make qualifying for flexible funding options, like a business line of credit, very difficult. (Business lines of credit, for example, are great for dealing with short term expenses as they pop up.) The right non-bank lender has funding options made just for you as an entrepreneur or SBO.
- Better Loan Terms and Interest Rate: In the competitive world of alternative lending, you can be offered lower interest rates and more favorable loan terms that meet your needs. This in contrast to big banks with big bureaucracy and inflexible terms.
- Quicker Approvals: You don’t need a long, drawn-out approval process as a startup founder. As an entrepreneur, you must get going quickly, so choosing an alternative lender is ideal.
Whether you need to fund your startup, take a product to market, purchase business vehicles or equipment, or expand your territory, alternative lenders can help. Contact Rotay Capital Finance to learn more about your alternative lending options. Contact us today.