The Benefits of Online Financing for Small Businesses
- June 21, 2019
- By Aidan Dwyer
Small business owners may be skeptical about the new wave of business financing options that are trending recently. If you have ever looked up â€œbusiness loansâ€, â€œworking capitalâ€ or â€œsmall business financingâ€ online, you may have come across a new breed of business lenders that are not traditional banks known as alternative lending brokerages. Alternative lending brokers often seem mysterious and somewhat risky when compared to traditional lenders like banks. But fear not – many alternative lenders are business owners just like you. They genuinely want to help your business (and make some money in the process). Working with an alternative lender may be more beneficial for small businesses than working with a traditional lender. Itâ€™s extremely important to find a team you can trust. A team that offers transparency and service, and treats your business the way you want it to be treated.
Advantages of Working with an Alternative Lender
Your business may have come across an alternative lender; if your business had previously been denied funding from a traditional lender such as a bank. Banks have a strict process for qualifying businesses for loans that is often very hard to follow. This means many businesses may not meet the criteria to qualify for any bank financing. On the other hand, alternative lenders may be more willing to work with businesses that banks consider too risky. Some alternative lenders even specialize in industries that the finance industry as a whole considers risky. These industries may be like construction and automotive sales. An alternative lender, willing to work with you can help your business to get the required working capital.
Another benefit of working with an alternative lender is the speed in which they provide funding. Alternative lenders generally work much faster than traditional banks. This can prove to be beneficial for small business owners who need the funding immediately.
Let’s say that you own a liquor store. Itâ€™s Wednesday and you need to place an order for products by Friday this week for receiving them on time. The order will cost you $30,000 to order, but you will make over $50,000 off of the products sold. You go to the bank, but they say the earliest they can get you funding is 2-3 weeks. If you work with the right alternative lender, they might get you the funding the same day after applying. The funding process with alternative lenders is also much simpler than it is with traditional banks. Generally, you require to underwrite a file as an application and your bank statement for the recent three consecutive months. Thus, saving you time and stress.
Leveraging Options to Get You the Best Deal
One of the biggest advantages of working with an alternative lending brokerage is that they can offer multiple financing options. If you contact a traditional bank to secure funding for a business, youâ€™ll go through a lengthy grueling application process. You may be lucky if you qualify and get a single offer. Banks will offer you one take it or leave it as an option. But this is generally more beneficial to the bank than it is to the business.
By working with an alternative broker such as REIL Capital; you’ll be able to compare multiple funding options from lenders who often send competing offers. The broker can then leverage those deals against one another to get your business a financing deal. A deal that is the best terms possible for your business. Alternative lending brokerages only make money. If your deal actually funds, they will work with you to get the best deal that is possible.
In conclusion, there are a lot of financing options for your small business out there, both traditional and alternative. Here at REIL Capital we take pride in our customer service and are committed to finding you the best deal possible. If you want to find out more about how we can help your business get the financing it needs, fill out our commitment free application here.Â