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Standard small business loan vs. alternative business funding…which is better?

Your small business is fueled by innovation, dedication and hard work. But these alone won’t fund your business – you need cash. Maybe you’re growing, and need capital to fund a rapidly expanding business. Or perhaps you need a short-term cash infusion to smooth out cash flow bumps. No matter your situation, you might be wondering: where should I turn?

If you’re like most small business owners, you might immediately think of a standard small business loan. And while it’s true this type of lending offers attractive rates and terms – it’s not ideal for every business owner.

For starters, after the Great Recession lending guidelines for small businesses got stricter. And while guidelines have eased up for larger companies, this isn’t the case for small businesses. Translation? It’s difficult to meet cash flow, credit score and collateral requirements for a standard small business loan.

When Does Alternative Business Funding Make Sense?

If you’re struggling to secure a standard small business loan, it’s tempting to leverage credit cards, apply for a personal loan – or even worse, stop looking altogether. However, this can translate into missed growth opportunities, and additional stress while working through cash flow challenges. During times like these, alternative business funding makes sense.

Alternative business loans offer flexible fixed daily payments, giving you access to the funds you need now, while planning for the future. This type of financing also provides flexible loan amounts, and fewer restrictions on how funds are used.

“We tailor our programs to meet your needs rather than trying to make you fit our box.” said Adam Stettner, Reliant Services Group CEO, “We design a program to fit yours.”

Do I Qualify?

Even if you have a decent credit score, securing traditional business funding can be difficult with tight lending guidelines. Alternative financing options don’t rely solely on credit scores for lending decisions. Instead they evaluate your entire business as a whole. This makes getting approved much easier, and gets you access to cash faster.

However, expect some basic guidelines with alternative financing. For example, Reliant Services Group requires you to be in business for at least 12 months, have at least $10,000 in monthly sales, and no open bankruptcies. But overall, most credit types can access this type of funding, and tap into additional financing quickly. Click here to find out more.

Did you find this article helpful? If so, please share through Twitter, Facebook, and LinkedIn – or leave a comment below. For more information on alternative funding, call 877-850-0998 to speak with an expert today.