A recent FIS Consumer Banking PACE Report of small and mid-sized business owners revealed that 22 percent of SMB’s leave because their banks were unable to customize services or products to suit individual needs. In addition, 23 percent switch because of loan, line or credit product denials.
Other areas of dissatisfaction stemmed from outdated banking processes and failure to resolve problems quickly. This report also encompasses a wide array of interesting data, but in short, banks are still missing the mark for small business owners.
If you’re struggling to secure a standard small business loan with your own bank, it’s tempting to leverage credit cards, apply for a personal loan – or 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.
“The majority of small businesses aren’t bankable. It’s important for them to find the right partner that’s advocating on their behalf, “says Adam Stetter, CEO of Reliant Funding. “Each business has a unique story and deserves individual attention for their needs through customized programs that work for them.”
Alternative business funding offers flexible fixed daily payments, giving you access to the money 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.
When Does Alternative Business Funding Make Sense?
Your small business is fueled by innovation, dedication and hard work but at some point, you’ll 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.
If you’re like most small business owners, you might immediately think of a standard small business loan from your local bank or credit union as a first option. While this type of lending offers attractive rates and terms – it’s not ideal for every business owner who may not fit the requirements needed to qualify.
It’s no secret that the economic downturn in 2008, led to stricter lending guidelines for small businesses. And while guidelines have loosened up for larger companies, this isn’t the case for many other smaller businesses. Although restrictions have eased up a bit, it’s still difficult for the typical business owner to meet cash flow, credit score and collateral requirements for a standard small business loan.
Do You Qualify?
Even if you have a decent credit score, securing traditional business funding can be difficult with tight lending guidelines. Alternative financing options are different as they 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.
You can however, expect some basic guidelines with alternative financing. For example, Reliant Funding 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. Contact us to find out more about how our customized programs can help your business.