Скачать или смотреть Best Alternative to Small Business Loans in 2018

We all know that business loans from banks and NBFCs are the best and easiest way to finance once business. But there some small and medium companies who are not able to get a business loan approved.

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Benefits of alternative lenders include the following-

Less Paperwork: We all are aware of the fact that when one goes for a business loan with any traditional lender such as a bank or NBFC he/she needs to fulfill the eligibility criteria to get the loan approved and sanctioned. And in terms to satisfy the eligibility criteria the applicants need to provide so many documents such as IT return forms, business plan, CIBIL and so no. But when it comes to alternate lending these many documents are not required. Less documentation and less paperwork make it easier for the people to avail it.

More Flexibility: Term loans, lines of credit, and business loans all these offered by banks are great business financing options. But the availability of an alternative loan with more flexibility has made it even easier and comfortable for the loan seekers. With an alternative business loan, an applicant can use a piece of equipment, or even an outstanding invoice as a collateral.

There is also flexibility in the amount one borrow. Generally, it’s not economical for the banks to grant a loan of less amount, but alternative lenders a loan seeker can easily get a loan even of the small amount. Alternate business lending with this flexibility provides a chance even to the small business to grow.

Faster Funding: Alternative lending is much faster as compared to the traditional lending.

Since the alternate lenders are not traditional banking institutions, hence they aren’t affected much by the government’s regulations of big government lending institutions. This is also because banks grant a loan using money from the savings accounts, while the alternative lenders get money from other sources like hedge funds, investors, lines of credit.

Fast Turnaround Time: With alternate lenders, applications are quick and hence is their funding.

For the same loan, banks can take a few weeks and even longer to approve your finances. Alternative lenders the decision is very fast and even the disbursal.

Though it may come with a bit higher interest rates still it is worth to go for when you have less funding options available or when there is some urgent requirement.

Cons of Alternative business loan

More Expensive: All though alternate business loans have so many benefits but still it has some corns, the first one is it is more expensive than any other business loan as the interest charged on alternate is a bit high as compared to the other traditional business loans. So, if you go for a long tenure with an alternate business loan it may cost you much. But generally, alternate business loans are short tenure loans.

Uses of Alternative Business Loans

Working capital
Business Extension and Expansion
Employee Payroll
Marketing/ Digital marketing
Hire employees
Pay taxes
Purchase Equipment and Inventories
Pay mortgage
Payments to the Clients

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