Every business needs working cash. What if
you need to get that cash before you open your doors? Suppose you need extra
capital to expand your business? There was a time when the only game in town was
to go to a bank to secure a business loans. However, with the roller-coaster
ride that is the economy, banks have grown skittish when it comes to lending.
Luckily, there are alternative lending options available.
Can your business
benefit from these?
The
Alternative Lenders
There are various types of alternative
lenders that you can research to see who might be a good fit for your company.
Depending on your credit history and earning potential, your selections might
be narrowed down but that doesn't mean you can't ask.
Here are some alternative
lenders to consider:
Credit
Unions: A credit union is controlled by its
members. It's also a not-for-profit type of institution so you are sure to get
some decent rates. You'll find credit unions based out of your community and
supported by various trades people, thus the "union" part of the
credit union.
Micro
Lenders: These are organizations that are charged
with lending funds to economically disadvantaged communities. The goal is to
spur business and you might be able to ride that wave into some serious cash
flow.
Factors
Lenders: Sometimes referred to as Accounts
Receivable Lenders, these are alternative lenders who buy up a business's
accounts receivable and provides a kind of cash advance to the company. You
still have to stay in business and pay back the loan but it's a good way to get
quick funds.
The
Advantages of Alternative Lending
One of the biggest advantages of
alternative lending is the flexibility. Unlike the mountains of paperwork and
guidelines you have to follow with a big bank, an alternative lender will often
have a streamline process for putting money into your account. They strive to
make things less complicated.
Getting approved quickly is another
benefit. You won't be wasting time with alternative lenders and that can make
all the difference when it comes to keeping your business up and running. Best
of all, alternative lending is a smart way to go when you consider the minimal
risk. Often you won't have to put up collateral so no need to take out a
mortgage on your home. Shop around and see what alternative lending sources can
do for your business.
