When people hear that you’re thinking of starting a small business and will need to apply for financing, the common advice is to direct you to the nearest bank. However, bank loans can be difficult to qualify for and they’re not the right choice for everyone. Whether a bank has denied you a business loan or you just prefer not to deal with banks, it’s important to understand that you have alternative lending options. Below are the three greatest benefits of working with an alternative lending company like Capital Connex.
Greater Access to Unsecured Business Loans
It’s common for banks to require some type of collateral before approving a business loan, regardless of the amount. That means you risk losing your house, car, or other valuable assets if you run into financial difficulty later and can’t repay the loan as agreed.
Finance companies and other alternative lenders don’t process nearly as many secured loans as banks do. While it may be necessary with very poor credit, there’s a good chance you can obtain your business line of credit, merchant cash advance, working capital loan, or another type of business financing without pledging any form of collateral.
Faster Approval Process
If you have received a personal or business loan from a bank, you already know that the approval process can be frustratingly long. The need to request a collateral evaluation can really slow things down, especially when the bank disputes the assigned value. Rather than take weeks or even months to obtain the business financing you need, save yourself the frustration and apply for alternative lending options instead.
Better Chance of Approval with Poor or No Credit
While banks typically insist on a high business credit score to approve a loan, many new small business owners aren’t aware they even have a business credit file. Alternative lending institutions are more likely to go beyond just the credit score when determining whether to approve a request for a small business loan.
We invite you to contact Capital Connex as soon as you’re ready to check out several alternative lending solutions.