It’s no more a surprise that alternative lenders are a striking alternative to big banks and are working on attracting more and more low and high risk merchants. Where can find low cost and reliable alternative small business loans for your company? If you’re interested in all these, this article is right for you.
Alternative Lenders Are on the Rise
New alternative lenders have emerged since the global credit crisis and are still emerging in the payments space. The non-bank or alternative finance field is an established source of funding for both low and high risk businesses. This is a growing trend, which makes new players enter the modern finance space to develop and bridge the market.
As for traditional banks, they’re currently more concentrated on what works best for them. Based on recent data, merchants really wait longer periods of time to get approved from the traditional lenders, which isn’t the case with alternative business funding providers.
In fact, small businesses know the challenges better: it’s been rather difficult for them to get access to working capital from traditional financial institutions. So, they haven’t been to scale up and build a better future for them properly. That’s where alternative financiers stepped in by offering an immense opportunity and competitive advantage.
Interestingly, 3 of the biggest small business lenders are now technology companies, namely, PayPal, Square, and Amazon. Together with the major players in the industry, they’re stealing business from traditional banks.
Alternative Small Business Loans You Need
Traditionally, business owners have considered banks as a go-for financing provider. However, the reality is that bigger banks aren’t willing to work with small businesses or those that’re high risk because they’re afraid they won’t get their finds back.
According to recent research, the vast majority of small businesses that apply for a loan from a big bank don’t get approved. Thankfully, the rise in online lending has opened up new doors for small businesses to obtain the funding they need.
On the other hand, the rise in the alternative lending space has also resulted in the rise of scams. Scammers are interested in stealing your money, sensitive information by posing as a legitimate lender. So, it’s critical to find a reliable and trustworthy alternative online lender like First American Merchant that’s dedicated to offering exceptional business funding options to merchants of any type and size.
FirstAmericanMerchant.com is a BBB-accredited alternative lender and an award-winning payment processor that specializes in the high risk space. With FAM, you can be sure to get easily approved for the most secure and cheapest alternative small business loans in the industry.
Unlike traditional financial institutions that take weeks/months to get back to you with their decision, First American Merchant provides quicker and easier access to the working capital you need.
To sum up, the competitive balance for payments, investments, and deposits have been changed by the entrance of alternative online lenders in the payments field. Alternative lenders have changed and continue to change the face of small business lending.