2 Reasons For The Popularity Of Alternative Lenders In The Current Business Climate.
Many business owners constantly complain that lending institutions have no idea of the difficulties that smaller businesses go through and that money doesn’t always come in at the same time every single month. These businesses are quite unique in that money owed may be paid back at different intervals throughout the month and lending institutions like banks and building societies do not take this into consideration when they set the terms and conditions for their loans. They lack the flexibility that smaller businesses need and they make the borrowing process much more difficult than it really has to be.
This is why businesses are always looking for alternative options when it comes to borrowing money and so they prefer unsecured business finance because they don’t have to put everything that they have worked hard for up until this point, up as collateral in the unlikely event that they are unable to pay back the money borrowed. This is why alternative lenders are becoming a lot more popular for the following reasons.
– They are flexible – As was mentioned briefly before, businesses do not all operate the same and money comes into their coffers at different times of the month. These lending institutions are aware of that because they have the finger on the pulse and so they are prepared to make the terms and conditions be more flexible and reflect the current financial status of the business that is applying for the loan. This takes the pressure of the borrower and so paying back the money is a much easier thing to do.
– They make quick decisions – Anyone who was ever tried to borrow money from a bank or building society will testify to the fact that it is a long drawn-out process with lots of red tape and hurdles put in front of you. It seems that these banks and building societies don’t want to lend the money and so this is why alternative lenders have become very popular. Many applications for unsecured business loans are made online and decisions are generally made within the first 24 hours. The decisions are generally favourable in the majority of cases and this is the kind of service that smaller businesses need.
If you have already made an application to your local bank or building society and they have just turned you down then please don’t despair. These alternative lenders are there to help and they understand your individual circumstances and they are willing to work with you.