Even some 10 years after one of the worst financial crises in the United States, financial institutions are still trepid about funding to small businesses. This reduces the ability to start, grow, or even stay afloat. The result is an even more intense environment for small business owners.
But what’s the truth about alternative financing? Are there real perks to choosing it over traditional business funding?
Traditional funding utilizes several departments which can make the funding process much lengthier and more drawn out for borrowers. Alternative funders, on the other hand, make the funding process easier. If you’re looking for faster funding, then you do well to consider alternative financing.
While alternative financers approve funding with far less stringent criteria than traditional lenders, they still go through an approval process. You will still be required to do a background and credit score check. However, alternative funding typically offers different funding products that target different aspects of your business. This means that your approval odds look at each aspect of your credit and business individually, rather than as a whole.
Keep in mind that while your credit score might not be used to determine approval, it will likely be used to determine your interest rate even in alternative financing.
Direct Access to Unsecured Financing
Traditional funding requires some sort of security, whether that comes from your business or your personal assets. This is where alternative funding options have the upper leg. Most alternative funding options are unsecured. Merchant Cash Advance funding, for example, is typically unsecured. If you don’t want to risk assets, then unsecured alternative business funding could be the right solution.
No Issue with Bad Credit
This is good news for small businesses! If you have bad credit or zero credit history, you can still secure business capital from an alternative finance lender. Banks, on the other hand, tend to either flat out reject you or dramatically reduce the amount they approve you for based on your credit history. With alternative funding, financing doesn’t revolve on your credit history.
Ready to Get Started?
Whether you’re facing cash flow problems, need to get debt-free fast, or want to maximize your business’s financing options, Legend Advance Funding can help. Reach out to us to learn more about the perks of alternative finance.