In the current economic environment, securing a loan from traditional lenders like banks has become difficult. They are less eager to give out finance and many small businesses and others are suffering. Sensing the niche in the market, alternative lenders have emerged and offered some help. They are willing to finance businesses, even when they have a poor credit score.
Simple Application Process
One of the main reasons why so many SME’s are turning to alternative lenders is due to their quick and easy application process. There are times in business when you need finance fast to secure a deal or take advantage of an opportunity. Traditional lenders take time when processing loans and when the money arrives, the opportunity has passed. You can quickly secure asset loans, short-term loans, and a range of other loans when you go through an alternative lender.
You only need to submit basic information and the application process is generally done online, so there is no need to visit the lenders establishment.
Rapid Approval & Cash Transactions
Unlike traditional lenders, applications with alternative lenders don’t take long to approve. Most loans can be approved within a 24-hour period, some may take longer depending on the situation. Once you’re approved, the money is usually transferred to your account that day, giving you funds to start expanding your business.
Securing Funds with Bad Credit Scores
Even if you have bad credit ratings, you can still secure funds through an alternative lender. That specialise in helping businesses who have struggled in the past. If you approach a traditional lender with a poor credit history, 99% of the time your application will be rejected.
When you apply for a loan from a traditional lender, it has to be used in specific ways. This isn’t always the case with an alternative lender. If you are a contractor with the intention of buying a new piece of equipment, that is exactly how the lender requires you to use the funds. Most of the time, non-bank lenders don’t ask about the specifics.
As you can see, there are many good reasons to opt for an alternative money lender. They are used to getting loan applications approved fast and they offer easy to navigate systems that allow clients to apply in minutes. Although they provide a range of useful services, it is important to find a reputable lender if you are looking for a loan.