Alternative financing is on the up and up, there is more demand than ever for different financing options. Because alternative financing is outside the traditional bank financing scope, businesses can access a more diverse range of financing that suits their needs. If you have been rejected from getting a traditional loan or bank financing, that’s okay and you’re certainly not alone.
According to entrepreneur.com in a recent Goldman Sachs report “the company referred to these organizations as “shadow banks,” defined as lenders operating outside the banking system. These “new technology-driven lenders, the report predicted, are poised to defer some $11 billion in profit from traditional banks within the next five years.”
This is great news for businesses looking for new options and opportunities to access the funds they require. New lending options are breaking the mold and offering faster and different financing options.
Here are some reasons why alternative financing might be right for you:
- You need more flexibility when it comes to financing terms.
- You need financing faster and don’t have time or patience to go through the traditional banking system.
- You’ve been turned down by a traditional bank because you don’t make enough revenue yet or fit their financial criteria.
- You prefer to do something in a more innovative way.
- You don’t have two years of financial statements the bank requires.
- You’re revenue heavy but cash poor because you are growing your business.