Advantages of Non-bank Lenders for Business
After the financial collapse a decade ago, businesses have found it harder to get business loans when they need them, especially during the challenging periods that companies experience from time-to-time. In 2009 banks originated 58% of all business loans. According to Forbes, loans to small businesses dropped for several years and have yet to return to their 2008 peak.
The result of the decline in business loans has led to multiple alternative lending options. Arguably the best for B2B or B2G companies, are accounts receivable loans from a reputable financial company like Allied Financial Corp. of Delaware Valley.
In conjunction with an accounts receivable loan, Allied Financial can also loan against inventory, machinery, real estate, and other assets.
Fast Access to Funds
When your company needs funds for daily operations, payroll, or accounts payable, you rarely have the time required to go through the borrowing process of traditional banks. Even when you meet the strict criteria laid out by financial institutions and regulatory bodies, it could take weeks or months to receive funds.
Quick and Easy Application Process
Accounts receivable financing eases the financial stress by letting you convert your outstanding account receivables into working capital. You get the funds you need in days instead of weeks or months which is typical of banks.
The process is easy, and decisions are fast. You can begin online.
It’s Easy to Get Started
Secure Financing Even After Bank Rejection
If you’ve approached your bank and they turned you down, don’t despair. By some estimates, banks turn down as many as 80 percent of business loan applications they receive. Here are a few things that can prevent you from getting a bank loan.
- You need less than $250,000.
- Your business is young.
- Your credit score is below 640.
Large loans cost a bank the same as small loans, so banks focus on large loans, rather than small ones. If your business is less than 2-years old, or if you credit score is below 640, you are considered a credit risk.
Because Allied Financial is not required to follow rigid banking guidelines, we pick and choose how much to loan and to whom. We base our decisions more on merit and need, rather than “checking off” the right boxes.
A Close Financial Relationship
Allied Financial works closely with each borrower to build a foundation strong enough to help them grow and to help them through the challenging times. Call us today. Let’s talk about what you need and how we can help your business.