Millennials are doing business a little different than any other generation. According to a survey by Bank of America, 74 percent of entrepreneurs between 18 and 34 believe that the country’s economy will be better this year than last year. This is in contrast to 35 percent of Baby Boomer business owners. Perhaps the positive outlook of Millennials has something to do with the ease of which they can acquire funding. The same survey reported that only 41 percent of Millennials actually considered going to a bank for start-up cash. 14 percent stated they got funding from peer-to-peer networks, and 11 percent used a microlender. This could mark the beginning of a significant trend in how future generations will attain funding for businesses in the future.
It is easy to see why Millennials have avoided traditional means of lending. If they are homeowners, they haven’t built up enough equity to qualify for a home equity loan, a popular option among Gen-Xers and Boomers. Plus young people haven’t had enough time to develop the high credit scores that most lenders demand. As a result, they seek out alternative sources of funding that have less demanding credit standards and faster payouts.
Millennials Love the Internet
But these aren’t the only reasons why Millennials are choosing alternative sources for business funding. Alternative lending lives on the Internet, and so do Millennials. They are the first generation that truly prefers to do business online.
Instant Gratification
Alternative financing is the only type of financing that can occur in as little as 48 hours. Millennials much prefer quick cash that is deposited into their accounts, as opposed to filling out paper applications that can take weeks to process.
Multiple Choices
Funders are creating online systems that allow young borrowers to find a variety of several options for extra capital with just one application. Millennials can use funding marketplaces to see the best options for getting their businesses off the ground.
If you are a Millennial looking for an alternative lender with experience, FAM is the start-up business cash advance provider you’ve been looking for. We help small businesses reach their financial goals with competitive rates and short term loans. FAM specializes in giving business cash advances to merchants with little credit history or bad credit. Contact us to learn more about our start-up business cash advance loans today.