8 Quick Facts About Alternative Money Lenders
There are a variety of working capital lenders that can help small businesses succeed. These lenders are different from bank loans as they offer a quick approval process, and require less documentation and credit history.
They put you in control of your finances so that you can plan your business investments better and according to your goals. They offer solutions that are tailored to your business needs. The repayment options are always aligned with your business plan. Alternative lenders are making it easy for small business to strive and compete in a competitive business environment.
Here are the main reasons for considering an alternative finance lender.
1. Application and approval
With a simple online application, you can submit all your documents and information within seconds and receive an approval over 24 hours and receive the funds as little as 24 hours into your business bank account. You do not have to make several appointments before gaining an approval for financing. In fact, the application only takes 10 minutes online.
2. Low interest rates
Interest rates can be high and limit your working capital. But not all lenders charge a high interest rate. There are financing providers that offer funds at lower rates for both small and medium size businesses.
3. Payment flexibility
The financing provider offers a fixed amount based on the rate and the funding amount requested. Your organization has a choice to pay equal and small installments in 6,9 or 12 months. You can also opt for a flexible financing plan that has no fixed time period. Repayment in this case is a small percentage based on your daily credit and debit sales.
4. No collateral
A no collateral loan is necessary for business growth and operations. The lender does not request for collateral which is a big advantage and allows you to operate stress-free. You do not have to show property or assets to ensure you are eligible for the funds.
5. Simple criteria
Businesses only have to meet 2 or 3 criterions that are not the case for big financial providers. These are minimum to ensure you can pay back the loan which includes being in business for a certain period of time, generating a certain level of sales and being a local business operator.
Your size of bank account is not relevant to acquiring a loan. You do not have to provide a detailed business plan to be approved for your funds. There are a few documentations needed such as financial records, government issued ID, signed contract and a void cheque. This makes it easy to acquire the working capital your organization needs without having to worry about tons of paperwork.
7. Credit record
Even if you have a low credit grade, your application will not be affected. The advantage with a small financial lender is that they understand that some owners may have a weak credit history. Therefore, they do not take this into consideration when you apply for funds. The biggest advantage as well is that you can build your credit strength through the small financial lender.
8. Easy and flexible payments
The lender offers not just a simple borrowing experience but also a hassle-free repayment experience. You do not have to give post-dated cheques or visit a branch to make installments. A void cheque submission will enable the lender to automatically deduct from your business account based on the repayment amount you and the lender have mutually agreed on. The repayment is can also be based on your daily sales which is the flex financing option that the lender offers to align with seasonal businesses.