Are you struggling to get funding for your business? Never fear, alternative loans for businesses are here. They tend to get a bad rap. This is mostly due to the fact that predatory lending runs rampant in today’s world, and it’s hard to know who to trust and who is scamming you. However, not all sources of alternative business financing are created equal.
10 Alternative Loans for Businesses to Help Your Business Soar
Nothing is guaranteed and things change every day. Still, at the moment, these 10 alternative lenders for small business tend to work well for many. They also offer a wide range of alternative business financing options to fit a variety of needs.
When it comes to alternative loans for businesses, Fundation provides both term business loans and lines of credit. It is most known for its working capital financing options. These are funds meant to help cover the day-to-day costs of running a business rather than larger projects.
StreetShares has its roots in lending to veterans. They still hold true to that mission, but now offer term loans, lines of credit, and contract financing to all types of business owners. The maximum loan amount is $250,000, and preapproval only takes a few minutes. They use a soft pull on your credit so it doesn’t affect your score.
There are two options for small business financing with BlueVine. They include lines of credit and invoice factoring. Minimum loan amount is $5,000 and maximum loan amount is $100,000. Annual revenue must be $120,000 or more and the borrower must be in business at least 6 months. Personal credit score has to be 600 or above.
With Fundbox, you get an online lender that offers a super-fast automated process. Originally, they only had invoice financing. Yet, now they offer a line of credit service as well. Repayments are automatic on a weekly basis. So,be sure you have enough funds in whatever account you let them draft from to cover your payment each week.
Kiva is an online lender that is a little different. For example, the interest rate is 0%. That means even though you have to pay it back, it is absolutely free money. They don’t even check your credit. There is one catch though. You have to get at least 5 family members or friends to throw some money in the pot as well. In addition, you have to pitch in a $25 loan to another business on the platform.
Fora Financial was founded in 2008 by college roommates. It now funds more than $1.3 million in working capital around the United States. There is no minimum credit score, and there is an early repayment discount if you qualify.
Obtaining financing from OnDeck is quick and easy. First, you apply online. If you receive approval, your loan funds will go directly to your bank account.
The secret to Lendio’s success is excellent customer service and a short, easy application process. The loan-connections service it offers slashes the time it takes to find the right alternative loans for businesses. This is due to its heavily vetted network of lenders.
Credibly is a specialized lender offering unsecured business loans online. The application process and funding can be complete in as little as two days, sometimes less. They offer daily and weekly repayment options.
Upstart uses a completely innovative platform for loans. They choose to use a combination of artificial intelligence (AI) and machine learning to gather alternative data for use in making credit decisions.
This may include such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances. The software they use learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.
Warning: Alternative Loans for Businesses Aren’t for Everyone
Despite the fact that these alternative lending companies tend to offer alternative loans for businesses with less stringent requirements, they won’t work for everyone. Alternative financing methods are just not always a good fit. Here is another other option. Keep reading to the end for a sure-fire way to ensure you can always qualify for the business funding you need when you need it.
The Credit Line Hybrid
What if there were alternative financing options that allowed you to have an even better interest rate than a secured loan, and yet get the money faster and easier than any type of traditional funding. What if you could get business funding without having to supply bank statements or check stubs? This is exactly what the Credit Line Hybrid offers.
This is alternative funding for small business that allows you to fund your business without putting up collateral. You only pay back what you use. You do need good personal credit however. That is, your personal credit score should be at least 700.
In addition, you can’t have any liens, judgments, bankruptcies or late payments. Furthermore, in the past 6 months, you should have less than 6 credit inquiries. Also, you should have less than a 45% balance on all business and personal credit cards.
In addition, you need at least 2 credit cards with at least 2 years credit history.
If you don’t meet all those requirements, you can still qualify. You can take on a credit partner that meets each of these requirements. Many business owners work with a friend or relative to fund their business.
If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding.
Use This Secret Weapon and Always Get the Business Funding You Need
To be eligible for the highest limits and best rates when it comes to business credit, your business has to be fundable. There are over 100 factors that impact the fundability of a business. It is a complicated web to weave through. Things from decades ago, long before you ever imagined owning a business, can affect fundability.
The key to having a strong, fundable business that can qualify for any funding is to work with a business credit expert. What can a business credit expert do for you?
- Help you assess the current fundability of your business
- Guide you to the most effective and efficient ways to improve fundability if necessary
- Help you find the best funding options for your business right now
- Guide you in what specific, actionable steps you need to take to qualify for more funding with better rates
- Leverage lender relationships to cut through a lot of the red tape and bureaucracy that can keep borrowers from getting the information they need, when they need it
It’s common for a borrower to call a lender or vendor credit department directly and not be able to find out if they report to the business credit reporting agencies, or exactly what they are looking for when it comes to credit approval.
A business credit expert already knows a lot of this information, and what they don’t know, they know how to get. They also know their way around alternative sources of financing for business, so they can offer guidance in this area as well.
This is your number one top-secret weapon to getting your business to a point where you know you can get funding when you need it. Try a free consultation with a Credit Suite business credit expert to get started now.