Many businesses and individuals depend on banks’ financial support whenever they need a little boost. But in recent times, banks have been sidelined thanks to the introduction of alternative lending options. These lending options prove to be more viable than banks due to many reasons.
With alternative lending, there is speed, flexibility, and accessibility of the needed financial aid. Most of these attributes are not in banks.
So, are you looking for alternative lending like an online money lender with more flexible requirements than banks? Here are some options.
Merchant Cash Advance
It is not exactly a loan. Here, you’ll receive some financial support depending on the amount your credit and debit card sales can provide in the future.
If your credit card payment is steady, you’ll likely receive a hefty amount that you can inject into your business. The provider takes the credit card sales after you’ve received a cash advance and remitted the balance.
Furthermore, you should be ready to pay more when your sales are high and pay less when sales are slow. You’re able to take care of your short financial situations without exerting too much pressure on your cash flow if you try this method.
Unsecured Business Loans
As a borrower, you’re given this loan on an unsecured basis. You don’t have to worry about setting up your valuable for collateral for a loan. The online money lender will only need a personal agreement or guarantee in the form of a binding document.
That legally binding document spells out what is required of you if you default on your loan repayment. In case of any default, you will be liable to make repayments.
For businesses to produce their selling product, they need equipment. You can’t carry out any work without the equipment that you need. But buying or replacing worn-out equipment is very expensive for your business
Many small businesses don’t have the capital to repair and maintain the equipment, which affects their business operation. And that is where the equipment loans come in.
Equipment loans provide small business owners with funding whenever their equipment breaks down, or they need a new addition for the business operations. There are many lenders on the market that can provide loans for software purchasing or to fund the development of launching your online store business.
Franchise Startup Loan
If you don’t want to start your business from scratch, look for a franchise startup loan. A franchise business gets your business going by providing you with a well-known brand already successful in the market.
A model company lends you support if they accept you in the market. But again, you’re required to raise the capital to cover the franchise fee.
Despite being lent a successful brand, you have to part ways with capital. Most potential brand owners will be evaluating their break-even point as they look for potential profit. Remember that you’re the key decision-maker when it comes to funding.
Funding Through Circle
Many people have benefitted and gotten into a business through the funding circle. It operates in a peer to peer model. Individual networks and other institutional investors are funding loans here.
There are specific terms regarding the repayment period and the interest rate. Circle funding is reasonably the most affordable lending alternative in terms of rates and long term loans.