Just as the human body relies on strong blood circulation for growth and survival, every successful business relies on strong cash flow to keep its operations up and running. If that cash flow begins to dry up, that business is in trouble. But even with strong cash flow, a lack of capital can limit the growth of any successful business.
This is why many businesses rely on loans and various forms of credit in order to function at their best. If you’re looking for additional funding for either survival or growth, you might be wondering whether your local bank or an alternative lending source is the right choice for your business. Here are some questions you’ll need to answer.
Is Your Creditworthiness Negatively Impacted?
Many businesses today are having a hard time getting the capital they need to keep their business afloat. Your company might also be in this situation due to lack of sales, increased regulations, reduced staffing, or unpaid bills. Even hugely successful companies can struggle when their regular clients fail to pay invoices on time.
These and other factors can negatively impact your cash flow and creditworthiness, making it difficult to secure financing from traditional banks and lenders. Getting denied at these institutions is one of the most common reasons why businesses turn to alternative lending companies.
Are Speed and Convenience High Priorities?
Many companies that struggle with their finances turn to alternative lenders just to stay in business. But these aren’t the only ones that seek out these lenders. In fact, many loan applicants have solid financials and have already taken steps to build their business credit.
Perhaps you’ve come across a great opportunity to expand your business.
Maybe you have the opportunity to purchase a property in the perfect location but need to move quickly because other buyers are making offers. Or maybe you are bidding on a large contract but will need to quickly purchase more equipment and hire and train more workers to get the job done.
In situations like these, going through your traditional big bank might get you bogged down in paperwork and lengthy approval processes, causing you to miss the opportunity.
Every alternative lending firm has its own application requirements, so no absolute guarantees can be made here regarding timelines. But these smaller lenders are often known to get loan applications approved more easily and more quickly than traditional banks.
When the clock is ticking, the lender you choose can make the difference between seizing the opportunity or watching it slip away.
If you want to see how alternative lending might be right for your business, contact Spearing Capital & Consulting, Inc. today to see what financing options are available.