Alternative Lending Solutions for Modern Entrepreneurs
With so many thousands of banks and other traditional lenders around the country, why would anyone want to consider alternative lending as an option? There are actually a number of reasons and instances where alternative lending makes more sense than attempting to apply for a traditional loan. Some of those instances are described below, although these are not the only reasons why alternative lending sometimes makes a better choice.
When you need money fast
Traditional bank loans can take quite a while from beginning to end, usually at least a month, and quite often much longer than that. As any business owner knows, there are a number of situations which require immediate funding, such as a cash flow shortage, that simply could not be satisfied by the arduous process of a bank loan. Some alternative lending options such as accounts receivable factoring or merchant cash advances can be arranged in as little as a week to satisfy an urgent business need.
Little or no credit history
Some new companies have almost no credit history to go on, and that makes them a poor risk in the eyes of conventional lenders like banks. It’s very difficult for a startup company to receive a bank loan for this reason. It’s also possible that a company might have poor credit due to late payment of vendors, or for other reasons. While this would be automatic grounds for rejection by a bank, that’s not necessarily the case with alternative lending. In accounts receivable factoring for instance, company credit history is not nearly as important as is the payment history of a company’s customers.
No loan to repay
One of the very appealing aspects of some alternative lending products is that they are not loans at all, which means nothing ever needs to be repaid, and there is no monthly installment being sent to a creditor. In a merchant cash advance as an example, a company can receive instant cash on the basis of its monthly credit card sales. With no monthly loan repayment, a company is not mired in debt, as would be possible with a large bank loan repayment.
When you’d rather not go through all the paperwork of a loan application with the bank, you’ll be pleasantly surprised to find how little paperwork is necessary when going through a funding arrangement with an alternative lender. Since alternative lenders are not as heavily regulated as traditional banks are, there’s not nearly as much paperwork involved with arranging for financing.
Modern Entrepreneurs work with Revap Group Capital
As a business entrepreneur, you need to acquire working capital that will allow you to meet the urgent demands of business operations, or for acquiring some valuable asset which might only be available for a limited time. Contact Revap Group Capital, and let us help you get the cash you need to achieve your business objectives.