Non-Bank Loans – Why Use Alternative Lenders?

Alternative lenders are everywhere, and they’ve managed to fill a gap that traditional banks long neglected. They operate in a similar fashion to conventional banks or credit unions, but they are a bit different. Alternative lenders focus on helping small to medium enterprises and they help people who are classed as untouchable by the banks.

Approachability

Non-bank lenders are more approachable than traditional banks. They offer a wide variety of services aimed at helping people secure loans and get the help they need. Traditional banks reject a lot of requests for funds and it can be impossible to secure a loan if you’ve no collateral or bad credit history. You can be approved for an unsecured business loan if you meet the right criteria set by the lender. You don’t have to have good credit history or collateral as security.

Streamlined Application Process

One of the biggest reasons why so many business owners use alternative lenders is because they have developed a streamlined approach to loan application. Traditional banks sometimes take weeks or months to approve an application, this isn’t the case with non-bank lenders. All you have to do is submit basic information online and wait for further instructions. You could be approved in minutes or asked to send in some additional information.

Quick Turnaround Times

When in business, you sometimes come across opportunities that require an immediate cash injection. If you have to wait for weeks to secure funds, the opportunity has passed. With many non-bank lenders, you can have funds in your account within 24 hours, enabling you to invest in an opportunity that has presented itself.

Loan Flexibility

When you apply for a loan from a traditional lender, you have to tell them what you need the money for. With an alternative lender, you can borrow money and choose what you want to do with it. They don’t ask as many questions as traditional lenders, they only want to know that you can repay the loan. You can use the money you’ve been allocated to grow your business as you see fit, there are no strict stipulations.

There are plenty of things to consider when using an alternative lender. Because they offer unsecured business loans, they tend to have higher interest rates. Even though they are higher, you can still get access to funds if you have a poor credit rating or zero collateral. You would have no chance securing a loan with a traditional lender.