If you are in need of funding for your business and you’ve exhausted all of the traditional avenues for funding, try considering alternative lending instead. These options usually have more flexibility than traditional loans and the application process is quicker. There are lots of options out there, so chances are there is something that will fit your needs.
What is an Alternative Lender?
An organization that offers an alternative to a traditional small business loan is an alternative lender. There are several categories, such as:
Direct private lending
Marketplace lending
Crowdfunding
Types of Alternative Lending
Alternative lending is unprecedented, regularly introducing new types of financing for small businesses. Here are some of the alternative loans available for small businesses:
Lines of credit
Short-term loans
Installment loans
Merchant cash advances
Microloans
Invoice factoring
Bridge loans
Equipment financing
Why Choose Alternative Lending?
This is a great option for your business when you can’t get approved for financing or a loan through traditional avenues. Additionally, if you need a low amount of working capital immediately, this type of lending quickly get you the funds you need and offer short repayment terms that banks will not.
Advantages and Disadvantages of Alternative Lending
There are several advantages to working with an alternative lender, including:
Simple application
Fast processing
Flexible loan packages
On the other hand, there are a few disadvantages to working with an alternative lender, including:
High interest rates
Short-term loans
Do I Need Good Credit to Get an Alternative Loan?
In some cases, you may be approved for alternative lending even with bad credit. The lender doesn’t necessarily base their approval on your credit score- they look at other qualifications as well, such as annual revenue. They also look at how long you have been in business.
If you believe that alternative lending is a good option for your business, contact 360 Commercial Capital for more information.
