Applying for a small business loan through a traditional bank can be a long and complicated process with no guarantee of approval. Small business owners looking for a more reliable source of funds may benefit from online alternative lending options.
Banks tend to be wary of lending to startups and new businesses because of the potential risk involved, which is why they require credit scores, cash flow statements, growth projections and business plans. Small businesses don’t always have this kind of concrete financial information and may also lack the collateral that banks are looking for.
Alternative lenders tend not to be as strict about application requirements. By considering other markers of business success, these lenders get a better picture of a company’s ability to pay back a loan and are often willing to provide funds to those with less-than-perfect credit or incomplete financial statements.
The process of applying for a loan through an alternative lender is much less complicated than applying for a bank loan. That means less paperwork to deal with and fewer company resources tied up in the application process. Approval may be as fast as 24 hours providing the relief you seek almost immediately.
This kind of quick access to funds can be critical in assuring the continued operation of a small business, especially in the event of equipment failure or another unforeseen crisis.
The growing popularity of alternative lenders means that many are offering interest rates similar to those of bank loans. Even lenders with higher rates offer payment options with a greater level of flexibility.
Business owners can look for loan terms that match their ability to repay the money and not have to worry about being blindsided by extra fees. The terms of loans from an alternative lender like ARF Financial is straightforward and free of the hidden costs and penalties included in many bank agreements.
In fact, when you apply for a Working Capital Loan or Line of Credit through ARF Financial your loan is brokered through a real FDIC-insured community bank. Because your loan is a real bank loan the interest is tax deductible and payments are fixed.
Alternative lenders allow small businesses to get access to money faster and with less hassle than traditional bank loans. These lenders have the potential to change the business landscape by offering a better chance at success in a competitive market.