Alternative funding refers to working capital which is acquired outside of traditional lending institutions like banks. So what are the benefits of using this type of funding to grow your small business? Here are five of the big benefits of alternative funding.
1. Keeps things simple
Gone are the days of lengthy application processes that require stacks of historical data and paperwork to get the green light. The lending landscape (or lendscape) has changed dramatically in recent years. While traditional lending could once bury you under a pile of paperwork, alternative lending applications can be processed online or over the phone, requiring minimal support documentation. With a Merchant Capital Cash Advance for example, your business needs to have been running for 12 months with a monthly turnover of R80 000 in order to qualify. Simple as that.
2. Faster is better
Alternative funding is all about getting you what you need, when you need it. Cutting edge alternative lenders are entrepreneurs themselves. So they intrinsically understand the complexities facing small business owners. In fact, the market leaders in this space can offer funding in under 48 hours with a streamlined administrative process that allows for quick processing and pay outs.