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There are 540,000 brand new businesses started every single month. It is critical that these businesses get the necessary funding to make it through the first year of business. Unfortunately, most banks will not lend to new businesses. Business owners are forced to find an alternative source of funding so that they do not fail during the startup phase.
Alternative lenders are very important for small businesses looking for loans that have been turned down by traditional banks. These lenders provide several different types of loans, ranging from working capital loans, equipment financing, Merchant cash advances, lines of credit, and real estate.
Benefits Of Using Alternative Lenders.
Easier qualification processes. Alternative lenders use different information when making decisions on your reliability and creditworthiness. The guidelines are not as strict as what you would find at typical banks. Many entrepreneurs say that alternative lender’s evaluations and loan decision-making are more fair and balanced.
Funding Options: It’s very hard to get a major bank to consider a loan that they consider too small. Major Banks also make qualifying for flexible funding options, like a business line of credit, very difficult. Businesses, especially start-ups, need lines of credit to keep the business going. The right alternative lender will have funding options made just for you as an entrepreneur.
Alternative lenders have better loan Terms and Interest Rates. In the competitive world of alternative lending, you can be offered lower interest rates and more favorable loan terms that will meet your needs. The big banks have too much bureaucracy and inflexible terms.
Alternative lenders typically have quicker approvals. One thing you don’t want, as an entrepreneur, is a long, drawn-out approval process. Your goal as a business owner is to get your business up and running as quickly as possible.
A first-hand look at alternative financing.
I want to introduce you to Dan Cronin. Dan is the owner of Viper Scale Racing, a high-performance slot car manufacturer in Utah. Viper Scale Racing produces slot car tracks along with the components to race on the tracks. It took a large amount of work and dedication to become a leader in the industry. Viper Scale Racing started in the summer of 2013 when he partnered up with a group of enthusiasts to build a new supercharged HO Slot Car Chassis. His business acumen and experience allowed him to transform his hobby into a profession.
Getting the funding to take it to the next level.
After putting his nose to the grindstone for a few years, Dan figured out he needed more resources to take his business to the next level. Not knowing where to get help for his business, he just googled it. That’s when Dan found Fundwise Capital. Fundwise Capital helps entrepreneurs, start-ups, small business owners and real estate investors secure the best funding they can qualify for, guaranteed. In less than a week his funding options started rolling in. Thanks to Fundwise Capital, Dan has been able to hire more workers and focus more on product innovation. Thanks to Fundwise Capital and Dan’s business acumen, he was able to provide a better overall experience for his customers.
Final Thoughts…..
There are 540,000 brand new businesses started every single month. It is critical that these businesses get the necessary funding to make it through the first year of business. Unfortunately, most banks will not lend to new businesses. Business owners are forced to find an alternative source of funding so that they do not fail during the startup phase. This is how you can get capital for a startup company when banks have turned you down.
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