Alternative lending is a collective term used to describe the broad range of loan options available to both consumers and business owners outside of a traditional bank loan. These alternative financing options are typically used when an individual or business owner cannot get a traditional bank loan for a variety of reasons.
Alternative lenders are generally more flexible than banks when it comes to loan approval and repayment schedules and often provide cash much quicker than traditional banks can. Since these types of business loans tend to be riskier for the lender, the average interest rates are usually higher than traditional bank loans. However, many small business owners would not be able to get financing for their businesses without the help of alternative loans.
There are many alternative lending options available for small business owners, including Merchant Cash Advances, Unsecured Business Loans, Working Capital Financing, Short-Term Funding and Business Line Of Credit.
Find out how Bizfi’s online lending platform can help your business find the right alternative lending option: Get Started Now