Why Banks Are No Longer the Best Solution for Short Term Business Financing
Traditionally, when a small business owner needed short term business financing, they went to a bank and completed a lengthy application. Then, after providing mountains of paperwork and giving proof of collateral, he waited, only to get an answer months later that he has been turned down.
In truth, banks have never really been that friendly to small businesses. They have strict criteria in regards to credit scores and numerous rules about risk management when making a decision to grant a small business loan.
Additionally, banks are more concerned about their shareholders and credit losses than the small business owner. As a result, there are so many obstacles in the way of a short term business loan that most small businesses are ineligible.
Why Alternative Lenders Are Replacing Banks for Short Term Business Financing
A decade ago, the only place that a business would turn to for short term business financing was a bank, but nowadays banks are secondary. Alternative lenders, like Financing Solutions (www.financingsolutionsnow.com), are the first place small businesses with up to $7 million in sales are turning to for lines of credit or short term cash advances.
Unlike a bank, alternative lenders do not require collateral and unlike a Factor, with Financing Solutions, your receivables continue to go directly to you. Therefore, your employees and vendors won’t know that you are facing temporary financial difficulties.
Best of all, the application process is fast and easy. You simply answer a few questions, provide supporting paperwork and receive an answer on your application in about an hour. Once approved, you can have the money in your account the same day.
They also offer a flexible repayment plan. You can repay the money in a few weeks or months, when your cash flow improves, with no early repayment penalties.
Alternative Ways to Promote and Grow Your Business
Everyone knows that in order to attract more business, you have to expand your reach and make prospects aware that you exist. Some have turned to social media for this task, but as a small business owner, keeping up with daily Tweets, snaps, posts, chats and pins can be very time consuming. There are other ways to increase your visibility without losing your mind.
One thing you can do is to volunteer to teach a class. This does not have to require a year-long commitment. You can offer to be a guest lecturer in your field for a class at your local college. They are always looking for fresh insights on current business practices. You may even find your next great employee. Online podcasts are another way to provide expertise, and you don’t even have to leave your office. Social media platforms like SkillShare can tell you about places and organizations looking for speakers.
Another strategy is to find better ways to network. This could include attending industry events or creating alternative business cards. Events will help you learn new approaches and trends and help energize you for the road ahead. New, eye-catching business cards will help get people talking about your company. You can find many ideas online to help you get started.
Alternative lenders, like Financing Solutions, are the best ways to grow your business. They will give you the instant business financing needed to take advantage of any opportunity.