What Bank Alternatives Are There to Small Commercial Loan Lenders
Author Walter Bagehot said, “Adventure is the life of commerce, but caution is the life of banking.” As a result, when you need to move fast, get funding and grow your business, small commercial loan lenders are not the best option.
It is likely that you have taken many risks to get your business off the ground and make it a success, only to hit a brick wall when trying to get an instant business loan from a bank. Fortunately, there are alternatives to the traditional small commercial loan lenders that can help.
Is There Really Such a Thing as Bank Alternatives to Small Commercial Loan Lenders?
Since the early 2000s, access to small business loans from traditional banks has been severely encumbered. In fact, according to a recent survey, more than half of the small businesses reported that they didn’t receive any of the fast business loans they applied for in 2014, up from 47 percent the previous year.
There are alternative banking companies that have been created to try and solve the problem. However, they can sometimes be worse than banks themselves.
For one thing, organizations like Kabbage, Lending Club and Prosper Loans tend to include high interest rates based on risk. These can range from 29 percent to 40 percent.
Additionally, some of these institutions use computer algorithms to determine funding eligibility. This means they may never even speak to you directly before deciding you are not qualified for a quick business loan.
Where Can a Small Business Go for Instant Business Funding?
The truth is that most small businesses seek less than $200,000 in funding but the average amount granted by banks is approximately $400,000, based on data provided by the Small Business Association. It isn’t really profitable for banks to grant loans less than $1 million. So, what is a small business to do?
Financing Solutions (www.financingsolutionsnow.com) is providing lines of credit, cash advances, debt restructuring and simple factoring that are geared towards the smaller businesses in the $150,000-$10 million in revenue range that banks hate working with. They give you the flexibility and consideration that banks will not.
With Financing Solutions, you can get same day business funding to help you make payroll, purchase supplies or handle emergencies. Even better, there is no long term commitment. You can repay the money in a few short weeks or months, when your cash flow improves.
Alternative Ways to Grow Your Business without Using a Bank
Some people believe that a business bank loan is the only way to grow a business. However, there are several methods you can use to increase sales without ever setting foot inside a bank.
One idea is to find ways to expand your offerings without too much effort. For example, if you own a restaurant, you can provide delivery or catering services. You can even block off a section of your establishment for private parties. This will serve to increase sales and position your company as the go-to source in your industry.
It is also important to periodically review and adjust your pricing strategies. Do your customers still feel like you are a good value for the money? You may need to offer discounts or special incentives for multiple purchases. Find out what motivates customers to stick with you. Remember that it is less expensive to keep an old customer than it is to recruit new ones.
The best way to grow your business is to contact Financing Solutions. They offer a better alternative for fast business funding.