Waiting for the Perfect Pitch (Taking out a Business Loan)
Taking out a business loan can be compared to a batter trying to hit a pitch. Often the strict regulations and guidelines that big banks subscribe to will throw complicated sliders and curves that your average business owner simply can’t hit. Other times the demand that the borrower has perfect credit results in an unhittable fastball speeding at 98 MPH. You attempt to swing, but before you can follow through the catcher has the ball. However, when taking out a business credit line from an alternative lender, those restrictions are lifted and you are offered a clean easy pitch that can easily be hit out of the park thus saving your business and livelihood.
Slowing down the curves
Alternative lending institutions offer business loans to those who are turned away from big banks. Simply put, the restrictions and required credit scores are dismissed in favor of a different set of ethics: help small businesses survive regardless of credit scores. Alternative lenders remove all the complicated twists in taking out a business loan. There are two main types: a secured and non-secured line of credit.
A secured line of credit works dictates that the borrower put up collateral against the loan whereas a non-secure loan requires no collateral at all. The benefit to having a secured loan is that the interest rate will be lower. However, some people would rather pay more interest and not bring their home or business into the equation. Both are great options for small business owners who are facing credit challenges.
Stimulating the economy
Any financial lender who helps to keep a small business from shutting its doors is playing an important role in stimulating the local economy. These institutes provide a service that is often overlooked by the general public. Struggling businesses must be aware of these lenders and seek them out for consultations. While large corporations are raking in massive profits, small businesses are still trying to recover from the chaos that erupted in 2008. In an article published by the ‘LA Times’ that examines small business struggles, the author states that new business start-up rates have sharply dropped and that this factor is a key reason for employment growth remaining mediocre.
If more lending institutions would reassemble their strict lending policies to actually fit within the means of your typical struggling first-year small business, the economy would be stronger. But thanks to alternative lending institutes, it is not dead in the ground.
Helping you round the bases
There are some specific reasons why alternative lending institutions are ideal choices for many small businesses that require loans to stay afloat. These include the following:
- Bad credit or no credit is not a disqualifier
- No collateral required
- No personal guarantee
- Cash granted within 24-48 hours
- Lines of credit and timing at the borrower’s discretion
- No limitations on use
When a small business experiences a major hiccup and requires immediate cash to make a repair or to serve as payroll, lenders who operate from this mound don’t throw any complicated pitches. Their program is designed to help struggling businesses, regardless of credit. Furthermore, they are bound to help them immediately in order to avoid that “going out of business” sign from appearing in yet another window.
Call your own shot
If you have a challenging credit score, don’t waste time in trying to hit impossible pitches. Find an alternative lender who can identify with your needs, and set you onto the path of becoming the MPV in your small business market.