Qualifying for a conventional business loan is often difficult for the small business owner. If the business is new, has little or no desirable collateral, or a bad credit score, they may be immediately denied a bank loan. Even if the business does qualify, it can take weeks or months to receive the money. These loans are pointless if the cash is needed immediately. The largest hurdle of running a business is always financing, until you consider alternative business loans. Luckily, there are many alternative business financing options available. They can move cash immediately and help businesses with bad credit get the capital they need.
The Halo Capital Group can step in and help you in this process. We are network of lenders and investors that use an efficient application process to get you funded quickly, with the most competitive rates and flexible terms in the industry. To learn more, fill out the form to the right and someone will get back to you within a few hours to discuss your options.
The Benefits of Using Online Alternative Lending Sources for Small Businesses
Alternative business lending is often used interchangeably with online lending. When banks started to tighten their lending restrictions, a huge void needed to be filled. Large amounts of companies across the United States still needed capital to grow. This gap was soon filled by these online lenders. By using an online lender, the application process is significantly faster, as loans are usually approved within a few days. Less documents are typically needed, and the information is transferred more quickly. Generally speaking, the requirements are more flexible too.
Alternative Lending vs. Conventional Bank Loans
Alternative business lenders offer loan products similar to bank loans. The borrower qualifications are what make alternative business financing so different. This means there are loans available for almost every situation. Bank’s conventional loan programs had too much risk in them and the banks were losing money. As a result, private lenders were able to develop new systems with borrower requirements that better calculated risk factors. They recognized that credit score was not the most important factor for a business loan and they instead considered cash flow and business plans when determining the eligibility of the applicant. This created a pathway which allowed alternative financing for small businesses to grow and flourish.
Qualifying for Unconventional Business Loans
Conventional business loans are offered by banks, and the approval decision is based largely on both your personal and business credit scores. If your scores are just below the mark, the bank might accept a guarantee of personal collateral for the loan. However, if you do not have excellent scores or desirable collateral, then you probably won’t receive a loan.
In recent years, unconventional loans have grown exponentially as an alternative commercial lending source. Although credit scores are usually considered during the application process, the final decision is based on much more. The most influential point of your application is usually your current business cash flow. Lenders know that businesses with healthy cash flow are more likely to repay their debts. Halo Capital Group analyzes your business cash flow, assets and liabilities, credit score, business plan and the amount of money you can put down when considering your application.
Alternative Small Business Financing Options
There are small business alternative financing solutions for almost every situation. Halo Capital Group offers alternative lending for small business with bad credit, little collateral and immediate cash needs.
Since we look at so many facets of a business, bad credit does not immediately eliminate an applicant. Credit checks are not even required. As long as a business is well run and maintains an acceptable cash flow, it can be approved. Additionally, we do not require that you need a personal guarantee to get approved for alternative commercial financing. Our no guarantee and personal collateral approval process means that new businesses or owners with bad credit can still receive the loans they deserve. Finally, we can provide immediate cash for businesses in need through our merchant cash advance services. In this program, approved businesses that process credit cards can quickly receive the money they need. Instead of a setting a monthly repayment amount, the lender takes a percentage of all credit card sales the business makes each month until the debt is repaid. This makes the loan easier to repay for the borrower and easier to maintain for the lender.
Small business alternative lending offers simple, fast and creative financing for all businesses. Halo Capital Group is an alternative lender that can provide you and your business with helpful solutions. We offer alternative funding sources for small businesses that have bad credit, no collateral or need cash quickly. Our online application process considers the entire business strategy, yet remains simple to fill out. And approvals can happen within hours. If you need a business loan and are struggling to meet strict bank requirements, alternative lending for small businesses may be what you need. See what Halo Capital Group can do for you.