Why Business Owners are Turning to Alternative Lenders

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International trends indicate that Business Owners are fast warming to the benefits offered by Alternative Lenders.

Of course we are not referring to the kind of money you can get from big, greasy, men in dark alleys (who tend to collect their cash with cricket bats when payments are missed), no.

From Australia to South Africa and beyond the big blue of the great Atlantic – Business Owners now have access to a host of reputable, accessible Funders – often through collection networks like FundingHub that provide a safe, hassle-free environment for parties to connect.

This shifts towards the alternative lending space driven by factors such as Loan Variety,
Flexibility and Accessibility, Approval Speed, Convenience, Simplicity (usually via online application processes) . . . and Service Quality – often significantly better than received when going through traditional channels.

Below we unpack some of these considerations, fueling the increasing popularity in Alternative Lending Solutions.

Loan Variety and Flexibility

Not all loans are equal and some, certainly, are more suited to your needs than others. Knowing which options are best for you and your business helps negate some unnecessary costs (and risks).

By connecting to Alternative Lenders through an aggregator network you gain access to a variety of different Funders, offering Flexible Repayment Options and Business Loan Terms.

On top of that you also gain access to a Service Provider that helps point your application in the right direction – finding the right type of Lenders for your specific type of need.

And it’s free...

Loan Application Speed and Convenience

Long, laborious and complicated application processes that take several weeks are fast becoming a thing of the past. One of the main advantages of Applying for a Business Loan from alternative lenders is that you get a quick response and the process is driven via an online channel that requires very little (if any) paperwork.

Most Business Owners do not have the luxury of waiting to meet challenges or take advantage of new opportunities . . . this is where quick access to the right type of capital makes all the difference in the world.

Loans with NO Capital Requirements

Typically when going through traditional channels business owners would need to put forward some form of capital in order to obtain a loan.

By contrast, most Alternative Lenders have products that do not require Capital Guarantees. Combine that with Flexible Payment Terms that suit your cash flow, e.g. taking a daily percentage of credit card sales, and you have a funding option that’s geared to help your business grow – on YOUR own terms.

Of course the Ying and Yang balance of life dictates that any type of benefit and / or product offering has to be closely scrutinised to ensure you are fully aware of both sides of the story before committing to anything.

The basics of Financial Practice Management remain – and no loans are without risk.

However, with the right guidance and available options, you have every right to feel optimistic about your ability to access funds when your business needs it most.

Connect with FundingHub for more information on the benefits offered by Alternative Lenders in South Africa.