I remember being in college when the recession hit a decade ago and thinking that the issue would be solved by the time I graduated. It’s been ten years and people are still feeling the impact of the recession, making it harder for startups and small businesses to find loans through traditional banks.
Alternative lending is the place to be when you’re younger or demonstrate a little more risk. Things you need to know about alternative lending:
It’s insanely faster than banks
Banks can take weeks to fund you and your business. Alternative lending has minimized the time needed to fund a person by utilizing some fancy data and analytics. At Small Business Funding, we can have your business funded within 48 hours! You can’t even get an appointment at a bank that fast.
No perfect people required
Forget to pay off your credit card in college? Let those student loans go a little past due? It’s okay. We get it. The person you were is not a reflection of who you are. We focus on your business revenue and make sure there are not a ton of NSF charges, or negative ending balance days. Less than stellar credit is not a major factor.
It’s actually more transparent
I bet you see some of the higher than usual interest rates and think “no thanks.” But have you ever considered the real cost? That 5% interest rate seems pretty on the surface until you realize you’re paying 5% for the next 5 years on that loan. Yes, alternative lending is more expensive up front, but you’re done with the advance in months. And, you’ll know exactly what you received, and exactly how much you’ll pay back, before you say ‘Yes’.
It’s based on what you can handle
So while we do have a fancy algorithm to help with the funding application, we have real people evaluating your business. We look at what your business can financially handle. We’d never give you an advance your business could not afford. No advances with financially straining payback options.