Bank loans are one of the most well-known solutions for businesses in need of financial assistance. The thing is, they can be difficult to obtain. They have strict requirements and require a lot of documentation. The underwriting process can take a while, and not all businesses have the time to wait. If you’re looking into alternative lending solutions, here are a few reasons why you should take the next step.
Get Approved Faster
Conventional business loans can take a long time to fund. The time it takes from filling out your application to receiving your money can be weeks, if not months. If there are issues with your collateral, the process can take even longer. Not all business owners can wait that long.
With many forms of alternative lending, the application process is much quicker. You generally only need to fill out a single-page application and provide a few pieces of documentation. Underwriting goes much more quickly, too, especially if you don’t need to provide any collateral. Depending on the lender, you may receive approval as soon as the following business day. In many instances, you may receive your funds shortly after.
You Don’t Need Excellent Credit to Qualify
The thing about conventional bank loans is that you have to have good to excellent credit in most cases to qualify. If your credit is less than perfect, your odds of approval shrink drastically. For many alternative lenders, your credit score matters, but it’s only one part of the equation. These lenders look at several different factors to determine your eligibility. If you’re approved, timely payments can help to boost your credit score, increasing your chances for approval on a business loan later.
Gain Access to Unsecured Financing
Bank loans require collateral to secure your funding. If you don’t have sufficient collateral, you likely won’t get approved. This can be a serious problem if you’re in need of funds to keep your business going. Fortunately, many forms of alternative financing are unsecured. You don’t need to provide any collateral for approval. While you might pay a little more in interest because of this, you’re more likely to get the financial boost you need to keep your business going.
Business loans are great in many situations, but they’re not necessarily the right solution for everyone. Alternative lending solutions can help you get what you need more quickly, without having to go through a lengthy application process.