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Alternative lending versus banks: Why banks don’t measure up

Where do I start?

Getting the funds your business needs can seem impossible. “Where do I start?” questions often get overwhelming. So where do small businesses go when they need funds to grow, expand, stock inventory, ramp up marketing, or just keep things going?

Banks vs. Alternative Lending

Banks want to see that you have a very good credit score before they will do any work with you. Also, banks are known to ask for collateral and, if they don’t ask for that, they may have you pledge a personal asset – such as your home.

The bank application process is time consuming and could take weeks to get you the money, if you’re approved after a long wait. This is why alternative lending could be the way to go when your small business needs the funds fast, easy, and hassle free. It’s becoming more convenient for small businesses to increase their chances of getting approved and funded quickly.

Unlike banks, your alternative lender can provide loans than can be repaid at a fixed daily rate, or build structures around your income to have a payback schedule that works for you. The approval process (once your short application is complete) is typically 24 hours or less, and the funds can be in your hands in as little as three days.

Flexibility in spending is key

Another important issue is that a bank could potentially have restrictions on how you use your money. Alternative lending gives no restrictions on to where the money is being spent. That flexibility can help you continue to run your business as you see fit. Couple all of this with no upfront fees and you’ll see that alternative lending gets you started on the right path.

With alternative lending becoming more popular, America’s economy is benefiting. Alternative lending has filled the huge gap left by banks. Small business owners with big plans have hope with alternative lending available to them.