If you have ever applied for business funding through a bank, you know how long and frustrating the process of approval can be. Just when you think you have submitted every possible document proving your creditworthiness, the banker asks for even more. As if that wasn’t enough, the guidelines for approval are usually quite stringent as well. Fortunately, you have the option of exploring alternative lending through a finance company or another non-banking institution.
You Don’t Need Perfect Credit for Approval
One of the biggest benefits of alternative lending companies compared to banks is that applicants don’t need to have a flawless credit report and high credit score to gain approval. In fact, they may not need a credit history at all since these types of organizations often work with new businesses without an established payment history. While a banker might insist on a high credit score and automatically deny someone with only a mediocre score, alternative lending companies are more likely to understand that situations such as a health crisis, job loss, or divorce can have a temporary impact on credit.
Greater Opportunity to Obtain an Unsecured Loans
It’s common for banks to ask borrowers to put up a piece of personal collateral such as their home or vehicle when approving a business loan. You won’t experience this when you work with alternative lending institutions. In fact, most types of business financing offered through these companies is unsecured. A business line of credit, merchant cash advance, and working capital loan are just three common examples.
Much Faster Application Process
It can take several weeks or months for a bank to approve a business loan. The process can especially stall when disagreements arise about the value of a borrower’s collateral. With alternative lenders such as Norris Commercial Capital, you can cut the application time down to just a few days. We invite you to contact us today to learn more about your business borrowing options.