Today, the world has become much more commercial than ever before. Sometimes, getting a loan for your small business may be of a challenge, especially if you’re a high risk merchant. What’s the advantage of applying for alternative small business loans? Let’s move forward and see.
Why Are Alternative Small Business Loans Better Than Bank Loans?
If you lack the necessary finances for your business, your business will stop growing. Also, it can push your business backward. Where to find the necessary funds for your business?
Historically, business owners in need of working capital used to go to a local bank. Most businesses in the past were small. Hence, banks were too willing to get merchants approved for business financing.
Nowadays, the situation has changed. Today’s dynamic market of online lenders gives merchants numerous opportunities for growth. Alternative online lenders have become of special importance in this regard. Quite naturally, this has resulted in a stiff competition from these non-bank lenders.
Alternative online lenders have so much to offer. Let’s see what advantages they provide in comparison with banks:
- Much Higher Approval Rates
Non-banks or alternative online lenders are ready to finance new, startup businesses. As for banks, they’re more willing to work with successful businesses backed up by excellent financial statements and pay attention to your overall financial context. Alternative online lenders also pay attention to your business model and whether you have a profitable business model or not.
- Better Technology Means
Alternative online lenders have embraced more advanced technology than banks. Such technology enables them to create practical payment tools for small businesses. So, you can enjoy a faster and more convenient lending experience.
- Faster and Easier Application Process
Thanks to non-banks’ streamlined application process, you can quickly complete your application online. Usually, you can get your approved within 24 hours. Importantly, you aren’t required to provide lots of paperwork: just some basic information.
- A Variety of Funding Options
Alternative online lenders offer multiple financing options. As to banks, they offer only long-term fixed loans and, mostly, business lines of credit. So, with a reputable alternative online lender like FirstAmericanMerchant.com, you can get easily approved both for low and high risk business funding.
First American Merchant is an award-winning business funding provider that’s rated A+ by the BBB. Besides, FAM offers the lowest possible rates in the industry both for alternative small business loans and its popular merchant cash advance (MCA).
- No Collateral
As a rule, non-banks don’t require you to provide collateral, unlike banks. Apart from collateral, banks also require your personal guarantee.
- Bad Credit Isn’t an Issue
Alternative online lenders typically don’t consider personal credit scores. They pay attention to how your business makes money, meaning your ability to repay now, as well as your future prospects.
- Increased Flexibility
With non-banks, you have more freedom to use the funding. Banks usually limit your flexibility on how you can use the loan. Alternative lenders take into account the fact that you may have short- and intermediate-term financial needs.
- Consider Your Unique Business Challenges
Alternative online lenders like First American Merchant treat you like a real person with your own specific business wants and needs. It’s crucial to understand merchants’ unique business needs so to provide the right merchant services.
One day, you may decide to turn to outside sources for financing. Alternative online lenders are here to help you get the best funding for your business.